Which one of the following factors will most likely cause an increase in aggregate demand?
A. An increase in net exports.
B. An increase in the real interest rate.
C. A decrease in net exports due to falling incomes abroad.
D. A technological development that decreases the cost of producing computer chips.
Answer: A
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Expansionary monetary policy refers to the ________ to increase real GDP
A) Federal Reserve's decreasing the money supply and increasing interest rates B) government's decreasing spending and raising taxes C) Federal Reserve's increasing the money supply and decreasing interest rates D) government's increasing spending and lowering taxes
If a country has a lower opportunity cost of producing oranges, then this is:
a. inefficient resource use. b. an absolute advantage. c. a tariff. d. a comparative advantage. e. a situation where oranges should be imported.
Each year, the Medicare trustees issue a report on the health of the program. According to the 2016 report, which of the following statements is true?
a. The net present value of future Medicare obligations that are currently unfunded will require Congress to appropriate funds beyond current law approaching $60 trillion dollars, over 300 percent of current GDP. b. The Medicare Hospital Trust fund provides permanent funding for Part A spending. c. Based on historical evidence, hospital productivity is expected to increase substantially in the future, lowering Part A spending substantially. d. Medicare spending has been holding steady at approximately one percent of GDP since 1975 and is expected to remain below 3 percent of GDP over the next decade. e. Fortunately, Medicare's trustees have historically overstated the system's future revenue shortfalls.
If we observe firms earning zero economic profits in the short run, we know that
A. the industry must be perfectly competitive. B. there must not be any barriers to entry. C. any market structure is possible since firms under any market structure can earn zero profits at some time. D. the industry must be either perfectly competitive or monopolistically competitive.