If a country wants to promote future growth, it should
A. produce more capital goods today.
B. produce more consumer goods today.
C. produce only needed goods.
D. produce only economic goods.
Answer: A
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Refer to Figure 7-2. Without the tariff in place, the United States consumes
A) 12 million pounds of coffee. B) 26 million pounds of coffee. C) 33 million pounds of coffee. D) 45 million pounds of coffee.
Refer to Figure 4-3. What area represents the deadweight loss at P2?
A) G + H B) C + E + H C) C + E D) B + C
In the short run, a contractionary fiscal policy would cause
a. the AD curve to shift to the right b. equilibrium real GDP to decrease and the price level to increase c. the AS curve to shift left d. the economy to slide along the AD curve e. equilibrium GDP and the price level to fall
According to the rational expectations school, expansionary fiscal policy is harmful to the economy, but expansionary monetary policy can be effective when the Fed tries specific targeting
Indicate whether the statement is true or false