The debt-to-GDP ratio will tend to decline over time when
A) r > g.
B) r < g.
C) the primary deficit increases.
D) the initial level of debt increases.
B
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Simon owns a gas station, and a new tax has been passed on gasoline. How can he expect his customers to react to the tax over the short term?
a. They will quit buying gas and use an alternative fuel. b. They will buy more gas because it has an inelastic supply curve. c. They will buy slightly less gas because there is no substitute. d. They will buy considerably less gas because it has an inelastic demand curve.
The questions that an economic system attempts to solve include
A. what to produce. B. for whom items are produced. C. how to produce items. D. all of these.
Which of the following must occur to sustain economic growth in the long run?
A) technological progress B) capital accumulation C) a higher saving rate D) all of the above
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C