A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
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Find the Marginal Rate of Technical Substitution for the following production functions:
a. q = L0.5 K0.5 b. q = L0.5 + K0.5 c. q = min{K,L} d. q = L + K
If the United States imposes an import quota on clothing, then U.S. exports
a. increase, U.S. imports increase, and U.S. net exports will not change. b. increase, U.S. imports decrease, and U.S. net exports increase. c. decrease, U.S. imports increase, and U.S. net exports decrease. d. decrease, U.S. imports decrease, and U.S. net exports will not change.
By the end of the colonial period, the Middle Colonies' population gained over New England but the Southern population continued to dominate
Indicate whether the statement is true or false
The term crowding-out effect refers to
a. the reduction in aggregate supply that results when a monetary expansion causes the interest rate to decrease. b. the reduction in aggregate demand that results when a monetary expansion causes the interest rate to decrease. c. the reduction in aggregate demand that results when a fiscal expansion causes the interest rate to increase. d. the reduction in aggregate demand that results when a decrease in government spending or an increase in taxes causes the interest rate to increase.