What was suggested by Keynes to move the economy out of a depressed state?
a. The invisible hand
b. The price mechanism
c. Monetary and fiscal policy
d. Zero government intervention
c
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The crowding-out effect implies that a government budget deficit ________ the demand for loanable funds and ________ equilibrium investment
A) increases; decreases B) does not change; does not change C) increases; increases D) decreases; decreases E) decreases; increases
Marco’s country has advanced technology and the facilities necessary to produce a high volume of goods. Kiera’s country has the same advanced technology and very similar facilities, but the workers in her country produce more output. What is the most likely cause of this difference?
a. The workers in Marco’s country are more educated. b. The workers in Kiera’s country are older. c. The workers in Marco’s country are older. d. The workers in Kiera’s country are more educated.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. To maximize total output, Paula should specialize in producing ________ while Ricardo should specialize in producing ________.
A. shirts; shirts B. computers; shirts C. shirts; computers D. computers; computers