From an initial long-run equilibrium, if aggregate demand grows faster than long-run and short-run aggregate supply, then Congress and the president would most likely
A) decrease the required reserve ratio.
B) decrease government spending.
C) decrease oil prices.
D) decrease tax rates.
Answer: B
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Suppose a country's net exports equal zero. Which of the following will happen if the volume of imports increases without an increase in the volume of exports?
A) The country will experience a budget surplus. B) The country will experience a budget deficit. C) The country will experience a trade surplus. D) The country will experience a trade deficit.
The "equality of opportunity" idea of fairness claims
A) a society should make the poorest as well off as possible. B) the results and the rules should both be fair. C) it's not fair if the rules aren't fair. D) private property can be transferred under government order. E) only a first-come, first-served system of allocating resources is fair.
The Solow residual attempts to measure the amount of output not explained by
A) technological progress. B) the direct contribution of labor and capital. C) economic projections. D) the amount of a nation's human capital.
If a union argues that a price cut will boost revenues of the firm and management argues that the opposite is true, then the price elasticity of demand is:
A. perfectly inelastic from the union's perspective and perfectly elastic from management's perspective. B. inelastic from the union's perspective; elastic from management's perspective. C. elastic from the union's perspective; inelastic from management's perspective. D. unit-elastic from the union's perspective and unit-inelastic from management's perspective.