If the actual price level is lower than the expected price level, the economy will contract in the short run
a. True
b. False
Indicate whether the statement is true or false
True
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In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. If there is no Ricardo-Barro effect, the figure shows a situation in which the government has a budget
A) deficit of $0.2 trillion. B) deficit of $1.6 trillion. C) surplus of $1.4 trillion. D) surplus of $0.2 trillion. E) surplus of $1.8 trillion.
When a nation exports a good or service in which it has a comparative advantage, employment in that industry
A) decreases. B) stays the same. C) increases. D) might change, but more information about what else the country exports is needed to determine if employment increases, decreases, or does not change. E) might change, but more information about what the country imports is needed to determine if employment increases, decreases, or does not change.
In 1776, the American Revolution was sparked by anger over
a. the extravagant lifestyle of British royalty. b. the crimes of British soldiers stationed in the American colonies. c. British taxes imposed on the American colonies. d. the failure of the British to protect American colonists from attack by hostile Native Americans.
Specialization in production is economically beneficial primarily because it:
A. allows everyone to have a job that he or she likes. B. permits the production of a larger output with fixed amounts of resources. C. facilitates trade by bartering. D. guarantees full employment.