Discuss some of the reasons why economists are concerned about the current recovery from the global financial crisis
What will be an ideal response?
Large trade deficit. Large fiscal deficits in most OECD countries, market perception that risk of sovereign debt default is high, and risk of deflation all contribute to a cautious outlook for the future.
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In what ways is the government debt a burden on future generations?
What will be an ideal response?
Mark and John are 10-year-old twins who do not get along. They have opened separate lemonade stands and are competing with each other, selling lemonade on their block. Their mother observes that Mark is very good at making lemonade and John is an
excellent young salesman. She suggests they both could make more money if they worked together. John counters that two stands will always make more money than one. Who is right? Why?
Money grows faster than real GDP will result ____, while money grows slower than real GDP will result ____.
What will be an ideal response?
If demand is elastic, then when price rises, total revenue will decrease.
Answer the following statement true (T) or false (F)