One In the News article in the text is titled "The New Economy." Which of the following is a feature of the "new" economy?
A. High level of unemployment.
B. Strong growth in productivity.
C. Strong growth in productivity, coupled with a high level of unemployment and a high level of inflation.
D. High level of inflation.
Answer: B
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When the short run aggregate supply curve shifts left, it ___ the short-run Phillips curve
a. Moves the economy up along b. Moves the economy down along c. Shifts right d. Shifts left
Which of the following is not a characteristic of less-developed countries?
a. a focus on production of consumption goods b. low levels of investment in capital goods c. political instability d. a high percentage of the population under age 15 e. adequate infrastructure
When interest rates decrease, the substitution effect suggests that individuals will
A. consume more in the future. B. consume more today. C. save more today. D. save more and consume less today.
A nation has a comparative advantage in a good when it has a
A) higher opportunity cost of producing the good. B) tariff in place protecting the producers of the good. C) higher absolute cost of producing the good. D) lower absolute cost of producing the good. E) lower opportunity cost of producing the good.