Suppose X - M = net exports; T - G = government sector balance; and S - I = private sector balance. What relationship exists among these variables?
A) (X - M ) + (T - G ) + (S - I ) = 0
B) (X - M ) = (T - G ) + (S - I )
C) (T - G ) + (X - M ) = (S - I )
D) (T - G ) = (X - M ) + (S - I )
B
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The speculative attack on the German mark in 1971 resulted in
A) a large increase in the German monetary base. B) a decline in the value of the mark relative to the dollar. C) a decision to end the floating of the mark against the dollar. D) a large decrease in the German monetary base.
The quantity produced by a natural monopolist facing an average-cost pricing policy will be:
A. less than the quantity produced by a marginal cost pricing policy. B. that quantity at which average costs are at their minimum. C. that quantity at which marginal costs are at their minimum. D. the same as the quantity that would be produced in perfect competition.
What are the two main components of business cycle theories?
A. A model of how equilibrium is reached and a description of the government's role in the economy B. A description of shocks and a model of how the economy responds to them C. A model of how people decide to spend and a description of the government's role in the economy D. A description of shocks and a description of the government's role in the economy
If the real wage rises
A) firms will hire less labor. B) firms will hire additional labor. C) the marginal cost of labor falls. D) the marginal benefit of the worker increases.