The Romer model suggests that there is a trade-off between ________
A) the use of resources in research and development and the productiveness of R&D
B) the rate of saving and the long-run growth of output
C) per capita output in the short-run and long-run
D) the size of the total population and the saving rate
C
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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
The figure above shows Diane's demand curve for soda. The price of a soda is $1.00. Diane's total benefit from consuming 15 sodas is
A) $15.00. B) $26.25. C) $11.25. D) $0. E) None of the above answers is correct.
Which of the following is NOT a reason for the weak recovery following the 2007-2009 recession?
A) Recessions started by financial crises are almost always severe. B) The decline in the automobile industry appeared to be structural. C) The collapse of the housing market was long lived. D) The recession was caused by a decline in short-run aggregate supply.
The Molasses Act (1733)
a. aimed to decrease trade between the colonies and the French West Indies. b. was flaunted with impunity by the colonists. c. placed a high tariff on colonial imports of foreign sugar, molasses and rum. d. if enforced would have disrupted one of the major colonial trades. e. All of the above.