Assume a country is closed. Given this information, which of the following must occur?
A) demand for domestic goods will be less than the domestic demand for goods
B) demand for domestic goods will be greater than the domestic demand for goods
C) S + T = I + G
D) a budget surplus exists
E) S = I
C
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The labor force equals the number of people:
A. both employed and unemployed. B. employed. C. aged 16 years and older. D. employed, unemployed and discouraged.
Refer to Figure 4-1. What is the total amount that Arnold is willing to pay for 3 burritos?
A) $1.50 B) $6.00 C) $7.00 D) $10.00
What were the principal causes of the U.S. government budget deficits of the 1980s? How did these budget deficits lead to the twin deficits? According to the Ricardian equivalence proposition, should twin deficits arise as a result of tax cuts?
What will be an ideal response?
If the price index is 100 this year, then:
a. there has been no inflation during the year b. the price level is thrice as it was in the base year. c. the price level is one hundred times what it was in the base year. d. the price level is double what it was in the base year. e. the inflation rate has been 100 percent since the base year.