Consider the following hypothetical data for a developing country:
Year Total Debt ($ bn) Debt/Export (%) GDP Growth Inv. Growth
1 6 134 0.6% –1.0%
2 6.5 147 2.9% 1.1%
3 7 159 5.1% 1.6%
4 7.5 174 6.4% 2.4%
5 8 198 1.1% –0.6%
Does this country have a debt crisis? What additional pieces of quantitative or qualitative evidence
(if any) would help you to decide?
Various answers are plausible and this will depend on lecture coverage. Close attention
to investment growth should be found in students' answers.
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Refer to Figure 9.7. Before the policy was implemented, consumer surplus was
A) $30. B) $60. C) $45,000. D) $90,000. E) $180,000.
The amount of time required before a project's total inflows match its total outflows is the:
A. break-even period. B. payback period. C. duration. D. yield to maturity.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
What a consumer actually pays for a good is known as the ______.
a. price ceiling b. market price c. price floor d. deadweight price