Which of the following dampens the effect on GDP of a change in government spending?
a. The money supply changes when real income changes.
b. Taxes change when government spending changes.
c. Money demand changes when real income changes.
d. People do not expect much from the government.
e. Aggregate spending does not respond to changes in the interest rate.
C
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In which period was most of the change in U.S. net capital outflow due to an increase in investment in the U.S.?
a. 1980-1987 b. 1991-2000 c. 2000-2012 d. None of the above are correct.
Countries like Malaysia and Thailand that tried to maintain overvalued currencies in the late 1990s inevitably faced increased
A. balance of payments surpluses. B. runs on their currencies. C. balance of payments deficits. D. both b and c.
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
When real GDP falls for two consecutive quarters the economy is in a
A) peak. B) trough. C) recession. D) depression.