Crowding out is caused by
A. A decline in overall spending.
B. A decline in tax revenues.
C. An increase in government borrowing.
D. An increase in consumer spending.
Answer: C
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Entry drives economic profits to zero
Indicate whether the statement is true or false
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.
The economy experiences both ________ and ________ when aggregate supply decreases and aggregate demand remains unchanged.
A. inflation; economic growth B. deflation; unemployment C. deflation; economic growth D. inflation; unemployment
Land owned by an individual or a group of individuals is an example of the economic concept of
A. private property. B. human capital. C. public property. D. physical capital.