It is desirable to be in a? short-run equilibrium that coincides with? long-run equilibrium.
A. True
B. False
Answer: A. True
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According to this Application, growth in China and India caused U.S. exports to increase. Because of this increase in U.S. exports, U.S. income will
A) increase by the same amount. B) increase by a larger amount. C) decrease by a larger amount. D) decrease by the same amount.
When a government chooses to have a zero deficit with regard to revenues and spending, it is operating with what kind of budget?
A) a slow economy budget B) a balanced budget C) a conservative budget D) a taxpayer-based budget
Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph of these two variables is
A) a line that has positive slope. B) non-existent because the two variables are not related. C) a horizontal line. D) a vertical line. E) a line that has a negative slope.
Between 2007 and 2009, the U.S. unemployment rate rose from under 5 percent to over 8 percent. A Keynesian economist would most likely blame this increase in unemployment on:
A. an increase in the bargaining power of labor unions. B. a decline in the level of aggregate demand. C. a decline in aggregate supply. D. an increase in the minimum wage.