An economist who claims that an increase in government spending would result mainly in a higher price level believes the economy is operating where the
A. MPC is small.
B. MPC is large.
C. aggregate supply curve is flat.
D. aggregate supply curve is steep.
Answer: D
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A nation that currently has a surplus in its current account is called a
A) creditor nation. B) debtor nation. C) net borrower. D) net lender. E) capital account surplus nation.
Which of the following types of goods would most likely be classified as a government-inhibited good?
A) heroin B) marijuana C) tobacco D) All of the above are correct.
The supply curve slopes or curves _____.
Fill in the blank(s) with the appropriate word(s).
If purchases power parity exists and the exchange rate is 1.50 u.s. dollars per British pound, then a latte that has a price of $4.00 in Northridge, California, has a price of _ in London, England?
a. 8.00 pounds b. 4.00 pounds c. 6.00 pounds d. 2.67 pounds e. .38 pounds