Real business cycle theory emphasizes the effect of ________ on real Gross Domestic Product (GDP).
A. the money supply
B. aggregate supply shocks
C. government spending
D. aggregate demand shocks
Answer: B
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The U.S. tariff on paper ____ the U.S. price of paper, _____ U.S. production of paper and _______the U.S. gains from trade
A. raises; increases; increases B. doesn't change; increases; increases C. doesn't change; doesn't change; decreases D. raises; increases; decreases
Suppose a little girl likes peanut butter and jelly sandwiches with exactly 2T of jelly and 1T of peanut butter. Suppose further that her mom agrees to make sandwiches to those exact specifications and the price of peanut butter is $.25/T and the price of jelly is $.10/T. If she has $1.80 to spend on peanut butter and jelly ingredients (ignore the bread) in a week, how many sandwiches will she
make? a. 1 b. 2 c. 4 d. 8
A household consists of only related family members like a father, mother, and children and not unrelated members like two students sharing a rented apartment
a. True b. False Indicate whether the statement is true or false
Before the Great Depression of the 1930s, most economists believed that
a. only active government policy could prevent recessions or inflation. b. a capitalist economy had a natural tendency to cure recessions or inflation. c. a capitalist economy had a natural tendency to inflation. d. recessions and depressions were inevitable until the economy broke down completely.