Keynes believed that the economy does not automatically move toward an equilibrium at full employment
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 1-4. Which of the following statements is false?
A) The slope of the tangent at E and the slope of the tangent at F are equal. B) The slope of the tangent at F is negative. C) The slope of the tangent at E is positive. D) Neither the slope of the tangent at E nor the slope of the tangent at F are equal to zero.
The purchase of French wine by U.S. consumers will be accounted as:
a. a deficit in the services account. b. a credit in the merchandise account. c. a debit in the services account. d. a surplus in the services account. e. a debit in the merchandise account.
In public education, the value of the services provided is
A) greater than the value that parents and students place on the services.
B) equal to the value that parents and students place on the services.
C) less than the value that parents and students place on the services.
D) zero since they are a public good.
Why is it important to use real GDP rather than nominal GDP figures when making comparisons of output across time periods?
A. The real GDP figures are a better measure of changes in the general level of prices. B. The real figures will reflect changes in the quantity of output and not changes in the general level of prices. C. The real figures will reflect changes in the general level of prices as well as changes in the quantity of output. D. The real GDP figures adjust for changes in the level of employment.