According to the critics of Keynesian economics, the rapid increase in government spending and large budget deficits in response to the recession of 2008-2009 would
a. slow the recovery process and result in weak long-term growth of real GDP.
b. speed the recovery process and provide the foundation for strong long-term growth of real GDP.
c. stimulate a more rapid recovery, but cause the economy to fall back into a recession in the near future.
d. slow the recovery process, but provide a foundation for rapid long-term growth of real GDP.
A
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Workers in high-income countries have ________ to work with than do workers in low-income countries
A) less physical capital B) more labor and less physical capital C) more labor D) more physical capital
Which expression below matches most closely the way economists go about testing their models?
A) "Consistency is the hobgoblin of small minds." B) "Seeing the results is the only way to know if you are right." C) "A bird in the hand is worth two in the bush." D) "In the long run we are all dead."
Which of the following statements concerning equilibrium in the long run is not true?
A. Most firms earn economic profits in the long run. B. The firm can vary its plant size in the long run. C. Economic profits are eliminated as new firms enter the industry in the long run. D. For firms in long-run equilibrium, P = MC = AC.
Which of the following is most likely to be an inferior good?
a. airline travel b. restaurant meals c. a subscription to the Wall Street Journal d. soft drinks e. used clothing