In the classical model with an open economy, an increase in government purchases can affect a country's exchange rate, causing its imports and exports to change
a. True
b. False
A
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If Project A has a cost of $5 and provides a benefit of $10, and Project B has a cost of $2 and provides a benefit of $4, then switching from Project A to Project B:
A) increases the net benefit by $3. B) increases the net benefit by $6. C) decreases the net benefit by $6. D) decreases the net benefit by $3.
Which of the following was not a lesson from the 2007-2009 financial crisis?
a. Regulatory failures were the result of weaknesses across the regulatory structure. b. The financial system operated with too much leverage. c. The business cycle no longer applies to economic analysis. d. Monetary policy alone may not be sufficient to stabilize aggregate demand.
Which of the following describes the relationship between the marginal product of labor and marginal costs?
a. Marginal product and marginal costs rise and fall in sync. b. When marginal product is rising, marginal costs are falling. c. Marginal costs must be known to figure marginal product. d. Marginal product equals change in marginal cost divided by output.
How quickly can an increase in government spending increase the gross domestic product?
(A) 6 months (B) 1 year (C) 5 years (D) 3 years