Which of the following is most likely to result in unemployment?
a. Aggregate demand grows more rapidly than aggregate supply.
b. Aggregate demand and aggregate supply grow at the same rate.
c. Aggregate supply grows more rapidly than aggregate demand.
d. Neither aggregate demand nor aggregate supply grows at all.
d
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Refer to the above figure. Suppose the U.S. economy is currently operating at point C. Which of the following actions would you recommend to the president of the United States?
A) Engage in contractionary fiscal policy by reducing government spending. B) Reduce taxes to stimulate investment, consumption and net exports. C) Increase government spending while holding taxes constant. D) Reduce the interest rate to stimulate investment minimizing the crowding out effect.
If all of a monopolist's costs are fixed costs, it will produce where demand is unit elastic
a. True b. False
In a certain economy, the components of planned spending are given by: C = 500 + 0.8(Y - T ) - 300rI P= 200 - 400rG = 200NX = 10T = 150 Given the information about the economy above, what would be the impact on autonomous expenditures of a one-percentage-point increase in the real interest rate (r )?
A. Autonomous expenditures would decrease by 35 units. B. Autonomous expenditures would decrease by 700 units. C. Autonomous expenditures would decrease by 7 units. D. Autonomous expenditures would increase by 35 units.
Which of the following is not an example of a socio-cultural impediment to economic growth?
A. Tribal allegiances that take precedence over national unity B. Religious beliefs and practices that severely limit economic activity C. Migration of labor resources from agricultural to urban areas D. The existence of a system for allocating jobs based on caste or tradition