The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
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In the Keynesian model, a short-run increase in investment spending will shift the aggregate
A) supply curve to the left. B) supply curve to the right. C) demand curve to the left. D) demand curve to the right.
Which economic question does the decision to give all of the butter the economy produces to the homeless answer?
a. What to produce? b. How to produce? c. For whom to produce? d. Who has a comparative advantage in butter production? e. Who has an absolute advantage in butter production?
Which of the following market structures is characterized by a single firm and huge barriers to entry?
a. Monopolistic competition b. Oligopoly c. Monopoly d. Monopsony e. Perfect competition
Table 34-3 ? ? Output Per Unit Labor Input ? Cotton Wheat Egypt 10 2 United States 20 20 The data in Table 34-3 indicate that the United States has
A. an absolute advantage in both goods, and a comparative advantage in cotton. B. an absolute advantage in both goods, and a comparative advantage in wheat. C. only a comparative advantage in wheat. D. only a comparative advantage in cotton.