One small country has seen strong economic growth over the past few years. Which choice did its leaders most likely make ten years ago to put the country in this position?
a. They invested more and consumed less.
b. They consumed more and invested less.
c. They produced more consumption goods.
d. They stopped acquiring capital goods.
a. They invested more and consumed less.
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
All of the following will shift the short-run aggregate supply (SRAS) curve EXCEPT
A) a change in the price of labor. B) technological progress. C) a change in the price of a needed raw material. D) a change in the price level.
Since 1930, U.S. government spending as a percent of GDP has
a. increased b. decreased c. stayed the same d. showed no particular trend e. increased by the same percent each year
What do economists call the tendency of people at a higher wage rate to choose free time over work?
a. substitution effect b. income effect c. diversion theory d. leisure theory