Which of these economic changes was observed during the Great Depression?
a. A fall in the domestic price level leading to an increase in import demand
b. A fall in resource prices leading to an increase in aggregate supply
c. An increase in unemployment leading to a decrease in the aggregate demand
d. An increase in the domestic price level leading to an increase in export demand
e. An increase in real GDP leading to an increase in the real interest rate
c
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Managed mutual funds usually outperform mutual funds that are supposed to follow some stock index
a. True b. False Indicate whether the statement is true or false
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Freedonia will now be able to consume a maximum of
a. 30 units of corn and 30 units of wheat. b. 40 units of corn and 30 units of wheat. c. 40 units of corn and 20 units of wheat. d. 10 units of corn and 40 units of wheat.
Little inflation will occur if the aggregate supply curve is flat.
Answer the following statement true (T) or false (F)
New growth theory is concerned with
A. finding a good way to measure economic growth. B. understanding how compounding works. C. increasing the savings rate in the U.S. D. understanding the forces that increase productivity.