The value of net exports increases when the value of ________
A) exports of goods and services minus imports of goods and services decreases
B) imports of goods and services increase
C) imports of goods and services decrease
D) exports of goods and services decrease
C
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Fiscal policy to solve short-run economic problems supports the Keynesian notion of
A) there being no government role in the economy. B) the need for autocratic rule. C) an active government role in the economy. D) the long-run nature of the economy.
The marginal propensity to save (MPS) is equal to
A) MPC + 1. B) 1 + MPC. C) 1 - MPC. D) MPC - 1.
Refer to the figure above. The deadweight cost of the tariff equals
A) $10,000. B) $25,000. C) $50,000. D) cannot be calculated without further information.
One difficulty with any explanation of economic fluctuations based on a shift in labor supply is that
a. workers' preferences tend to change very quickly b. labor supply shifts all the time without causing recessions or expansions c. labor supply is difficult to measure d. workers' preferences tend to change very slowly e. the unemployment rate changes during economic fluctuations