Answer the following statement(s) true (T) or false (F)
1. A budget surplus occurs if the amount of government spending is greater than the amount of tax revenues during a fiscal year.
2. The term "full employment" means that the unemployment rate is equal to zero.
3. Contractionary policies stimulate the economy to grow.
4. If the European economy is booming and US exports increase, aggregate demand (AD) increases.
5. Efficiency wages, a Keynesian theory of unemployment, posits that wages higher than the equilibrium wage are a cause of unemployment.
1. False
2. False
3. False
4. True
5. True
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Other things remaining same, a left shift in the demand curve will lead to:
A) an increase in the equilibrium price and the equilibrium quantity. B) a decrease in the equilibrium price and the equilibrium quantity. C) a decrease in the equilibrium price and an increase in the equilibrium quantity. D) an increase in the equilibrium price and a decrease in the equilibrium quantity.
For baseball card collectors, Babe Ruth baseball cards from 1927 would most likely have a perfectly
A) inelastic demand. B) inelastic supply. C) elastic demand. D) elastic supply.
The International Monetary Fund, one of the Bretton Woods Institutions,
(a) was meant to provide short-term credit. (b) was meant to provide long-term credit. (c) was meant to provide both short- and long-term credit. (d) was not meant to provide credit.
At the start of the Civil War, the population in the U.S. was about half that of the United Kingdom
Indicate whether the statement is true or false