A country has a growth rate of 3%. Government spending is 60 billion units of currency and its tax revenues are 32 billion units of currency. The current national debt is 400 billion units of currency. At which inflation rate is its debt-to-income ratio unchanged?
a. 2%
b. 3%
c. 4%
d. 5%
c
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How does the production possibilities frontier illustrate opportunity cost?
What will be an ideal response?
National income and domestic product must be equal
a. True b. False Indicate whether the statement is true or false
The analysis of the short-run and long-run Phillips Curve suggests that an increase in aggregate demand:
A. Influences real output and employment in the long run, but not in the short run B. Influences real output and employment in the short run, but not in the long run C. Does not influence the price level in the short run or the long run but only real output and employment D. Does not influence real output and employment in the short run or the long run but only the price level
The production possibilities curve illustrates all of the following concepts except:
a. the law of increasing costs. b. unlimited wants. c. scarcity. d. opportunity cost. e. availability of resources.