Suppose, due to the effects of a military conflict that has ended, that a country experiences a large reduction in its capital stock. Assume no other effects of this event on the economy. Which of the following will tend to occur as the economy adjusts to this situation?
A) a relatively low growth rate for some time
B) a relative high growth rate for some time
C) zero growth for some time, followed by a gradually increasing growth rate
D) positive growth, followed by negative growth, and then zero growth
E) none of the above
B
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
When there is an increase in government expenditures, which of the following raises investment spending?
a. the investment accelerator and crowding out b. the investment accelerator but not crowding out c. crowding out but not the investment accelerator d. neither the investment accelerator or crowding out
The differences in the ratios of exports to GDP across countries are believed to be caused primarily by
A) trade barriers. B) each country's size. C) geography. D) all of the above E) both B and C
An increase in the demand for a good that is produced by many firms will
A. increase all of their respective marginal cost curves. B. increase all of their respective marginal revenue curves. C. decrease all of their respective marginal revenue curves. D. decrease all of their respective marginal cost curves.