Which of the following statements is true?
A) In a closed economy, government spending equals zero.
B) A nation with a high savings rate will accumulate capital rapidly.
C) A nation with a high savings rate will accumulate capital slowly.
D) In a closed economy, aggregate consumption equals zero.
B
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Explain why the rates of death due to kidney disease and diabetes have slightly increased in the United States since 1981
What will be an ideal response?
The real resource a government earns when it prints money and spends it on goods and services is called
A) seigniorage. B) control of capital movements by limiting foreign exchange transactions. C) pure profits. D) inflation profits. E) greenback.
What is the underlying assumption of the original, simplified Keynesian model?
A) The relevant range of the short-run aggregate supply curve (SRAS) is vertical. B) The relevant range of the aggregate supply curve (AS) is vertical. C) The relevant range of the short-run aggregate supply curve (SRAS) is horizontal. D) The relevant range of the long-run aggregate supply curve (LRAS) is horizontal.