If real equilibrium GDP is above potential GDP, expansionary fiscal policy should be pursued
Indicate whether the statement is true or false
FALSE
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Between 1790 and 1860, Southern population growth was dominated by growth in the slave population
Indicate whether the statement is true or false
What is the first round effect on the components of aggregate demand, if the government increases spending (assume fixed exchange rates and financing through the real credit market)?
a. Aggregate demand increases and net exports decrease. b. Aggregate demand and net exports do not change c. Aggregate demand decreases and net exports increases. d. Aggregate demand and net exports increase. e. Aggregate demand and net exports decrease.
Which of the following conditions is characteristic of a monopolistically competitive firm in short-run equilibrium?
a. P > AR b. MR > MC c. P > MC d. All of the above are correct.
Suppose the federal government had budget surpluses of $80 billion in year 1 and $120 billion in year 2 but had budget deficits of $10 billion in year 3 and $40 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years, the federal government's public debt would have
A. increased by $50 billion. B. decreased by $200 billion. C. increased by $150 billion. D. decreased by $150 billion.