In the United States during the Vietnam War era, as military spending increased:
A. unemployment dropped to very low levels.
B. both frictional and cyclical unemployment increased.
C. frictional unemployment dropped, but cyclical unemployment increased.
D. overall unemployment rates did not change.
Answer: A
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A period in which the economy is growing at a rate significantly above normal is called a(n):
A. depression. B. recession. C. expansion. D. peak.
Following the 2007-2009 financial crisis, many people feared that Greece might leave the euro and resume using the drachma. If that happened, the drachma might be worth less than the euro
When using fiat money like the drachma, the key to acceptance is that households and firms have confidence that if they accept drachma in exchange for goods and services, the drachma will not lose much value during the time they hold them. If sellers were not willing to accept the drachma in exchange for goods and services, the drachma would not serve as A) a medium of exchange. B) fiat money. C) legal tender. D) a unit of account.
A World Bank study suggest a strong link in Africa between governments that __________ special-interest groups and __________ rates of economic growth
a. cater to, high b. cater to, moderate c. cater to, low d. ignore, low e. ignore, moderate
Which of the following statements is true regarding leakages and injections? a. Government transfer payments must equal taxes because one is a leakage and the other is an injection
b. Imports must equal exports since both are leakages. c. Government purchases, investment, and exports are leakages from the circular flow of income and expenditure. d. Savings and net taxes are leakages from the circular flow of income and expenditure. e. Net taxes are an injection into the circular flow, while exports are a leakage.