Models are simplifications that are used to observe the workings of a system.
Answer the following statement true (T) or false (F)
True
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When the economy swings back toward the boom part of a business cycle which of the following will generally not occur?
A. Labor demand will increase. B. Cyclical unemployment will decrease. C. Actual wages will approach the market-clearing level. D. Labor supply will decrease.
If the price of inputs rises and personal income taxes rise:
a. Price index rises, and real GDP rises. b. Price index rises, and real GDP falls. c. Price index rises, and the change in real GDP is uncertain. d. Price index falls, and real GDP rises. e. The change in price index is uncertain, and real GDP falls.
Which of the following economic functions does the U.S. government perform?
A. collects taxes B. provides services C. issues regulations D. The U.S. government performs all of these tasks
In the 1980s, Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction?
A) Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the United States. B) The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers. C) The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S. government. D) The Japanese government wanted more automobiles to be available for export to countries other than the United States.