An economic variable that moves in the same direction as aggregate economic activity (up in expansions, down in contractions) is called
A. procyclical.
B. countercyclical.
C. acyclical.
D. a leading variable.
Answer: A
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Education vouchers have the advantage that they retain ______ but still allow _____
a. government financing; parents to choose b. government production; considerable government control c. government production; parents to choose d. government financing; considerable government control
Suppose that the exchange rate between the U.S. dollar and the Mexican peso is 1 peso = $0.11. If the U.S. dollar price per Mexican peso changes to 1 peso =$0.10, the peso is said to have __________ and the dollar to have __________
A) depreciated; appreciated B) appreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated
Which of the following businesses could easily exit a market?
a. a diamond mine b. a hot dog restaurant c. an oil refinery d. a breakfast cereal company
If strong fiscal policy stimulus is used to combat a recessionary gap, what will happen?
A. A rapid movement toward lower unemployment and higher inflation B. A rapid movement toward lower unemployment and lower inflation C. A slow movement toward lower unemployment and higher inflation D. A slow movement toward lower unemployment and lower inflation.