Suppose real GDP in a country called Gambria is increasing by 5% annually and the population of Gambria is increasing by 2% annually. Then, :
A. Gambria's population must be declining.
B. Gambria will have to export more than it imports.
C. the general level of prices in Gambria must be increasing.
D. Gambria's per capita real GDP will be increasing.
Answer: D
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The International Monetary Fund divides nations into three groups. What are the three groups and what are the characteristics of each group?
What will be an ideal response?
In order to achieve a high economic freedom rating, a country must:
a. provide secure protection of privately owned property and evenhanded enforcement of contracts. b. refrain from creating barriers that limit domestic and international trade. c. rely more fully on markets rather than governments to allocate goods and resources. d. do all of these.
Active changes in tax and spending by government intended to smooth out the business cycle are called ________, and changes in taxes and spending that occur passively over the business cycle are called ________
A) automatic stabilizers; discretionary fiscal policy B) discretionary fiscal policy; automatic stabilizers C) automatic stabilizers; monetary policy D) discretionary fiscal policy; conscious fiscal policy
A change in the ________ leads to a change in demand that causes a ________.
A. price of other goods; shift in the demand curve B. price of other goods; movement along the demand curve C. price of the original product; shift of the demand curve and a movement along the new demand curve D. price of the original product; shift of the demand curve