A notable macroeconomic effect of the bursting U.S. housing bubble in 2007 was a
A. dramatic contraction of aggregate consumption spending.
B. marked expansion in the construction sector of the economy.
C. modest reduction in Real GDP growth of one percentage point.
D. all of the options are correct.
Answer: C
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The above figure shows the U.S. market for replacement cell phone batteries. Area E is the
A) producer surplus when there is free trade. B) deadweight loss from tariff. C) tariff revenue. D) increase in producer surplus due to the tariff. E) gain in total surplus due to the tariff.
Which of the following most accurately describes an impact of the Navigation Acts?
a. Wages of Southern plantation owners increased. b. Wages of New England sailors increased. c. Wages of wheat farmers in the Middle Colonies increased.
An improvement in a firm's technology that improves productivity results in a(n):
a. leftward shift of the supply curve. b. upward movement along the supply curve. c. willingness to supply a larger quantity than before at any given price. d. downward movement along the supply curve.
International capital flows strengthen
a. monetary policy and have no effect on fiscal policy. b. monetary policy but weaken fiscal policy. c. monetary and fiscal policy. d. fiscal policy but weaken monetary policy.