Figure36-9
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Figure 36-9 shows aggregate expenditures when net exports are fixed and aggregate expenditures are variable. The autonomous spending multiplier is
A. smaller when net exports are fixed.
B. smaller when net exports are variable.
C. larger when net exports are variable.
D. the same whether net exports are fixed or variable.
Answer: B
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The immediate effects of a discretionary increase in government spending are represented by a: a. rightward shift of the aggregate demand curve. b. leftward shift of the aggregate demand curve. c. rightward shift of the Phillips curve
d. leftward shift of the Phillips curve. e. movement along the Phillips curve.
Which of the following is common to both tariffs and quotas?
A) Tariffs and quotas are both used as a means to increase government revenue. B) Tariffs and quotas both increase economic efficiency. C) Tariffs and quotas are both designed to reduce foreign competition faced by domestic firms. D) Tariffs and quotas are both examples of voluntary export restraints.
Economic growth is shown on the production possibilities frontier as
A) a movement from one point on the PPF to another. B) an outward shift in the PPF. C) an inward shift in the PPF. D) the curvature of the PPF.
The gold standard period was
A) up until the first world war. B) between the first and second world wars. C) following the second world war until 1970. D) between 1954 and 1970. E) between 1814 and 1865.