If Jennifer withdraws $750 from her savings account and deposits it in her checking account, then M1 will ________ and M2 will ________
A) increase; increase
B) increase; decrease
C) increase; not change
D) not change; decrease
C
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A person who has given up searching for work is called:
a. frictionally unemployed. b. structurally unemployed. c. a discouraged worker. d. unemployed.
General Motors Corporation (a U.S.-based firm) produces a Saab vehicle in Sweden, and sells it in the United States. In which country's GDP is it included?
a. Sweden and the United States b. The United States because it was sold there c. The United States because GM is a U.S. company d. Sweden because it was produced there
Government purchases are said to have a
a. multiplier effect on aggregate supply. b. multiplier effect on aggregate demand. c. liquidity-enhancing effect on aggregate supply. d. liquidity-enhancing effect on aggregate demand.
Answer the following statement(s) true (T) or false (F)
1. Economist rarely have opinions or make value judgments. 2. Many controversies in economics revolve around policy considerations that contain both positive analysis and normative analysis. 3. Positive analysis can tell us whether a policy should be implemented. 4. Disagreements happen much more often in economics than in other fields.