Suppose that the economy is at its long-run equilibrium and the government increases its purchases. Which will NOT occur as the economy moves back to its long-run equilibrium?
Answer: The interest rates will decrease.
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Some resources are better suited to produce certain goods than other resources. This fact leads to
A) a linear production possibilities curve. B) inefficiency in the economy. C) the law of increasing additional cost. D) increases in technology.
Of the world's countries, which of the following can be said of their real GDP growth rates in recent years?
A. Countries like China and India have experienced higher rates of growth than the U.S. B. The U.S. has always had the highest growth rate in the world. C. Neither of these statements is true. D. Both of these statements are true, since the U.S. was highest until 2010, when China surpassed it.
In the Keynesian model, consumption depends on:
A. the natural rate of unemployment. B. disposable income. C. potential output. D. whether the government has a budget surplus or deficit.
Which categories of people are excluded while estimating the number of potential workers in the United States?
What will be an ideal response?