The decline in U.S. housing prices starting in 2007:
A. had essentially no impact on the rest of the U.S. economy.
B. led to a sharp increase in consumer spending on other good and services.
C. was followed by a large increase in employment.
D. prompted many to sell their houses, causing house prices to fall further.
Answer: D
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Refer to Table 7.1. Output is increasing at
A) a diminishing rate. B) an increasing rate. C) a constant rate. D) a negative rate.
Refer to Figure 4.2. Use best-response analysis to answer the following question
If Ferris's choice placed us in the bowling alley, Sloane's best response, depending on the column she finds herself in, would include choosing all of the following cells except the one located at the ________ section of the appropriate payoff matrix. A) upper right B) upper left C) lower right D) lower left
Firms in a high-wage nation such as the U.S. can compete effectively with imports from low-wage nations if
a. skill levels are identical in the nations b. the U.S. reduces tariffs on imports c. low-wage nations impose tariffs on U.S. made goods d. labor productivity is higher in the low-wage nation e. labor productivity is higher in the U.S.
The money market (short-run) equilibrium equation states that the demand for real balances, (L(i)Y) is always equal to the supply of real balances (M/P) because __ adjust(s) to ensure that people are willing to hold the entire stock.
a. nominal interest rates b. real interest rates c. the price level d. nominal GDP