How do economists sometimes measure physical capital in a country?
(A) The amount of roads and bridges per capita.
(B) The number of computers that are available to businesses.
(C) The amount of savings that the citizens have in the bank.
(D) The number of telephones it has in relation to its population.
Ans: (A) The amount of roads and bridges per capita.
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Since 1940 the US Government has generally had a budget:
A. surplus. B. that has been balanced C. multiplier. D. deficit.
Fiscal policy:
a. Is a powerful tool because budget deficits add directly to Aggregate Demand with no offsetting changes in consumption, investment, and/or net exports. b. May not be a powerful tool if most government expenditures are fixed and unchangeable in the short run. c. Is not a powerful tool because the government has very little control over a nation's monetary base and/or money multiplier. d. Is a powerful tool because of the decisive movements in the automatic stabilizers.
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.
Figure 10-4
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In Figure 10-4, if full employment occurs at an output level of 4,000 and the economy is currently at an output level of 5,000, then we can expect a(n)
A. increase in autonomous consumer spending that shifts the aggregate demand curve to the left. B. increase in wages that will shift the aggregate supply curve to the left. C. decrease in investment spending that shifts the aggregate demand curve to the left. D. decrease in wages that will shift the aggregate supply curve to the left.