Suppose only 7 percent of Turkey's products go to the United States. Hence, an increase in U.S. imports from Turkey:
a. would have no significant effect on Turkey's domestic income.
b. would significantly increase Turkey's domestic income.
c. would significantly decrease Turkey's domestic income.
d. would significantly increase U.S. domestic income.
e. would significantly decrease U.S. domestic income.
a
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The simple Keynesian model assumes that
A) gross private domestic investment exceeds net investment by the capital consumption allowance. B) prices, especially the price of wages, are "sticky downward." C) there will never be any excess capacity in the short run. D) aggregate demand will always equal aggregate supply.
How does the equilibrium quantity traded change when there is an increase in supply and a decrease in demand?
The budget of an unconstrained government is similar to a common pool resource, and this will lead to
A) lower interest rates and spending levels consistent with economic efficiency. B) excessive spending and budget deficits. C) lower taxes and a deficient level of spending. D) a deficient level of spending and budget surpluses.
Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.
?Figure 5.2Refer to Figure 5.2. At Point C the price elasticity of demand is -1. Along line segment ________ of the demand curve, the demand is elastic.
A. AF B. BE C. AC D. CF