Empirical evidence points to the fact that financial crises:
A. are newsworthy but have no impact on economic growth.
B. can have a positive impact on economic growth as weak borrowers are weeded out.
C. have a negative impact on economic growth for years.
D. have a negative impact on economic growth only for the year of the crisis.
Answer: C
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The taxes used to pay for Social Security and Medicare are:
A. income taxes. B. sales taxes. C. corporate income taxes. D. payroll taxes.
An increase in the U.S. national debt would be:
A. unsustainable if U.S. GDP grew at a faster rate than the debt. B. unsustainable under any circumstances. C. unsustainable if U.S. GDP grew at a slower rate than the debt. D. sustainable under any circumstances.
Suppose the equilibrium price of good X is $25 and the equilibrium quantity is 124 units. If the price of good X is $2:
What will be an ideal response?
A country has had its per capital real GDP remain constant for several years. During this period this country
A. may have experienced economic growth if the average hours worked per week have fallen. B. will have an increase in the number of poor people. C. will have experienced an inward shift of the production possibilities curve. D. has not experienced any economic growth.