Refer to Figure 4.1. All else equal, a decrease in the government's budget deficit will cause
A) a shift from S1 to S2.
B) a shift from S2 to S1.
C) a change in the interest rate from r2 to r1.
D) a change in loanable funds from L2 to L1.
A
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Consider an economy over the years 2008 and 2009. The output in the economy has remained constant over the two years but the prices of all goods and services have halved. In such a situation,
A) the real GDP of the economy stays the same over the two years. B) the nominal GDP of the economy remains the same over the two years. C) the real GDP of the economy increases over the two years. D) the nominal GDP of the economy increases over the two years.
The South's transportation problem was primarily due to
a. a shortage of mules and horses. b. a limited rail network. c. a shortage of inland shipping. d. the lack of a merchant marine.
Output per capita will tend to increase if the labor force participation rate in a country ____ or if workers put in ____ hours. a. rises; longer
b. rises, shorter. c. falls; longer. d. falls; shorter
Which of the following is not correct?
a. When developing economic theories, graphs offer a way to visually express ideas that might be less clear if described with equations or words. b. Graphs are one way of expressing the relationships among variables. c. When studying the relationship between two economic variables, graphs allow economists to draw indisputable conclusions about causes and effects. d. When analyzing economic data, graphs provide a powerful way of finding and interpreting patterns.