An extremely severe recession is known as a
A. peak.
B. trough.
C. depression.
D. contraction.
Answer: C
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Which of the following is a possible drawback of horizontal fracking?
a. A fall in the cost of recovering natural gas and oil b. An increase in the price of gas and oil as a result of a decline in the supply of natural gas and oil c. A fall in imports of natural gas and oil d. A fall in environmental exploitation due to the means employed to extract oil e. An increase in harmful air emissions, water contamination, and problems associated with the disposal of harmful waste fluids
If Suzette responds to an increase in the interest rate by decreasing her saving, then, for Suzette,
a. the increase in the interest rate creates an income effect that is greater than the substitution effect. b. the increase in the interest rate creates a substitution effect that is greater than the income effect. c. consumption when young and consumption when old are perfect substitutes. d. consumption when young and consumption when old are perfect complements.
If the government decreases the income tax rate, then:
A. aggregate supply curve with shift to the right. B. aggregate demand will shift left. C. aggregate demand will shift right. D. GDP will decrease.
Economics is the study of
A. the determinants of preferences. B. nonhuman phenomena. C. scarce resources and unlimited wants. D. the physical sciences.