Expansionary fiscal policy raises Real GDP more in a closed economy than in an open economy
Indicate whether the statement is true or false
True
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If the demand for Home exports decreased abroad, the Home fall in output would be greatest
A) if the decrease was temporary and the exchange rate was fixed. B) if the decrease was temporary and the exchange rate was floating. C) if the decrease was permanent and the exchange rate was fixed. D) if the decrease was permanent and the exchange rate was floating. E) if the decrease was permanent and the exchange rate was high.
Related to the Economics in Practice on p. 466: A recent study by economists at Yale University and the University of Chicago suggests that changing retirement plan enrollment options from "opt-in" systems to "opt-out" systems increased pension plan enrollment after three months of work from ________ percent of workers to ________ percent of workers.
A. 65; 98 B. 10; 100 C. 80; 22 D. 77; 42
The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 100 billion kilowatt hours are produced is
A) 5¢ per kilowatt. B) 10¢ per kilowatt. C) 15¢ per kilowatt. D) 20¢ per kilowatt. E) 0¢ per kilowatt.
The key difference between supply in the short run and supply in the long run is that we assume that firms:
A. are able to enter and exit the market in the short run. B. are able to enter and exit the market in the long run. C. will not collude in the short run. D. will have a total supply that is constant in the long run.