An alternative to random experiments is to rely on ________ to mimic the controlled experiment.
A. manipulated experiments
B. mirror experiments
C. predetermined experiments
D. natural experiments
Answer: D
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Suppose the following information describes the economy:GDP2,000Consumption1,500Government Spending300Net taxes400Private saving equals ________ and national saving equals ________.
A. 100; 200 B. 200; 500 C. 100; 100 D. 200; 300
On the graph above, a permanent tax reduction, assuming that there is a permanent effect on aggregate supply, is likely to move the economy from point 1 to point ________
A) 2 B) 8 C) 6 D) 3
People who live in countries with ________ average incomes generally live __________ lives.
A. lower; shorter B. lower; longer C. higher; shorter D. higher; more meaningful