Which of the following is a positive economic statement?
A. We should try to eliminate poverty in the United States.
B. If the price of eggs increases, the quantity demanded of eggs will fall.
C. Policymakers should strive to eliminate government budget deficits.
D. The President of the United States should promote high employment growth in the United States.
Answer: B
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A circular flow model shows the interrelationship between the ________ markets and the ________ markets
A) expenditure; income B) household; goods C) business; household D) goods; factor E) household; factor
In the neoclassical growth model, convergence is conditional upon two countries having
a. the same savings rates. b. the same depreciation rates. c. the same technology growth rates. d. the same population growth rates. e. all of the above.
Believers in the hypothesis of rational expectations argue that: a. expansionary fiscal and monetary policy can reduce unemployment without creating inflation. b. a trade-off exists between unemployment and inflation even in the long run
c. the Phillips curve is vertical even in the short run for expected changes in inflation. d. the Phillips curve is downward sloping even in the long run.
All of the following policies are ways for a country to promote long-run economic growth except
A) imposing stricter regulations to limit foreign direct investment. B) undergoing political reform to decrease corruption. C) enacting stronger laws to protect property rights. D) increasing vaccinations against infectious diseases.