Financing government expenditure through deficits rather than through taxes will lead to higher spending if
A) it results in crowding in.
B) it results in crowding out.
C) people are more aware of taxes than they are of deficits.
D) people are more aware of deficits than they are of taxes.
C
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for ramen noodles, an inferior good. Which panel describes what happens in this market as a result of an increase in income?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
Economic growth due to labor force expansion or capital investments will result in I. A leftward shift of short-run aggregate supply. II. A rightward shift in long-run aggregate supply
A) I only B) II only C) Both I and II D) Neither I nor II
Suppose in 2001, nominal GDP in Russia was 1000 rubles. If 2000 is the base year and the GDP deflator for 2001 was 0.50 (highly unlikely as is the GDP of 1000 rubles!), Russia's real GDP in 2001 was
a. –1,000 rubles b. 10,000 rubles c. 500 rubles d. 1000 rubles e. 2000 rubles
An example of an investment is
A. a restaurant placing otherwise idle money in an interest-bearing savings account. B. a sock company repurchasing its own shares. C. a delivery company adding more vehicles its fleet. D. a pencil factory that can produce consumer and business goods.