Assume the government decides to reduce spending in order to reduce the budget deficit, which it financed by borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the right.
b. Start the analysis in the real goods market with aggregate supply shifting to the left.
c. Start the analysis in the real goods market with aggregate supply shifting to the right.
d. Start the analysis in the real credit market with demand for real credit shifting to the left.
e. Start the analysis in the real credit market with demand for real credit shifting to the right.
.D
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According to the Bureau of Labor Statistics, to be officially unemployed a person must
A. be in the labor force. B. be waiting to be called back from a layoff. C. have lost a job. D. be 21 years of age or older.
Answer the following statement(s) true (T) or false (F)
1. A normative criteria is a way of balancing benefits against costs. 2. Consumer's surplus equals the total value that the consumer places on his purchases minus the amount he actually paid. 3. A consumer's demand curve for pizza is identical to his total value curve for pizza. 4. Market demand always represents marginal value. 5. Social or welfare care is consumer surplus minus producer surplus.
The manufacturer of Beanie Baby dolls used quarterly price data for 2005 I - 2013 IV (t = 1, ..., 36) and the regression equationPt = a + bt + c1D1t + c2D2t + c3D3tto forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1t, D2t, and D3t are dummy variables for quarters I, II, and III, respectively. 
The estimated QUARTERLY increase in price is ________, and the estimated ANNUAL increase in price is ________ .
A. $0.60; $2.40 B. $1.50; $6.00 C. $0.80; $3.20 D. $1.40; $4.00 E. none of the above
The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7% per year. This compares to what percentage growth per year in low-income DVCs (developing countries)?
A. 1.1% B. 2.1% C. 4.0% D. 0.4%