Refer to Figure 27-8. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?
A) increase income taxes B) decrease government purchases
C) increase government purchases D) sell Treasury bills
C
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Use the following graph to answer the next question.
Other things equal, a shift of the aggregate supply curve from AS0 to AS1 might be caused by a(n) ________.
A. decrease in aggregate demand B. increase in productivity C. decrease in nominal wages D. increase in government regulation
A long term goal of the NAFTA member countries is to integrate their economies into a single economic entity with a common currency as well as common trade policies and internal factor mobility
Indicate whether the statement is true or false
On this chapter quiz for this course you can study for up to four hours. If you don't study at all you will get a 70. One hour would give you an 80, the second hour increased your score to 89, the third to 92. If you studied the fourth hour your score would be 87. In which hour did diminishing returns set in?
A. The first because the score was the lowest of the studying options. B. The second because your gain is less than the previous hour. C. The third because your score peaked there. D. The fourth because you had a drop in points in this hour.
The amount the government budget deficit would be if the economy were at full employment is known as the
A. natural deficit. B. full-employment deficit. C. primary deficit. D. current deficit.