Which of these descriptions of a recession does Professor Cowen use in the video?
A. "An increase in government spending crowds out private spending and investment."
B. "A negative real shock has reduced the economy's potential growth rate."
C. "The fundamental factors of production are underused."
D. "High inflation makes price signals hard to interpret."
Ans: C. "The fundamental factors of production are underused."
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Which of the following statements is an accurate description of the Revolution?
a. It never had majority support. b. Two-thirds of the population either opposed it or did nothing to support it. c. It became a popular war, maintaining widespread popular support after 1776. d. Both a and b are correct. e. None of the above are correct.
At the market equilibrium
a. quantity exceeds price b. excess demand equals excess supply (and both are zero) c. price and quantity are equal d. each seller produces at full capacity e. everyone who is represented along the demand curve buys the good
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and reserves account in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period falls and
reserves account becomes more positive (or less negative). b. The quantity of real loanable funds per time period falls and reserves account remains the same. c. The quantity of real loanable funds per time period and reserves account remain the same. d. The quantity of real loanable funds per time period rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
GDP is a complete measure of economic welfare.
a. true b. false