Can economic theory prove national restrictions on international trade will reduce global welfare?
A) No, but it can demonstrate that they will reduce the welfare of the nations that impose the restrictions.
B) No, but it can demonstrate that they reduce efficiency.
C) No, but it can predict which groups will be made worse off or better off.
D) Yes, if welfare is defined as economic welfare.
C
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From 1970 to 2010, as a fraction of GDP, the quantity of money that people and businesses have held has been
A) independent of people's use of credit cards. B) increasing. C) decreasing. D) fluctuating erratically. E) changing only as the interest rate changed.
The policy which holds that the federal government should not allow large financial firms to fail, for fear of damaging the financial system, is known as the ________ policy
A) too-big-to-fail B) Dodd-Frank C) mandatory bailout D) rational expectations
Government spending on interstate highways, public housing facilities, and defense projects are all ways that the president can
a. close a recessionary gap b. close an inflationary gap c. combat inflation d. shift the aggregate demand curve to the left e. reverse the paradox of thrift
At any given price level, equilibrium GDP on the expenditure side occurs when ____.
A. Y = C + I + G ? (X ? IM) B. Y = C + I – G C. Y = C + I + G + (X ? IM) D. Y = C + X + G + (X ? IM)