"A drop in government expenditures lowered output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________
A) rose; rise
B) rose; fall
C) fell; rise
D) fell; fall
D
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Refer to the figure above. What is the total surplus after Barylia opens up to free trade?
A) $455 B) $800 C) $1,000 D) $1,200
The balance of payments ____
a. b and e b. is always zero c. is positive when the nation runs a trade surplus d. is negative when the nation runs a trade deficit e. is an itemized account of a nation's foreign economic transactions
The term capital, as used by economists, refers to
a. money b. the physical space in which production occurs c. the time allocated to producing goods and services d. financial securities such as stocks and bonds e. machinery and equipment that is not used up during the production process
The demand for a resource is derived mainly from the demand for ___________.
Fill in the blank(s) with the appropriate word(s).