In the mid-1960s, the United States was running an expansionary fiscal policy to support the war effort in Vietnam. This likely:
A. had ambiguous effects on the trade deficit.
B. worsened the trade deficit.
C. improved the trade deficit.
D. left the trade deficit the same.
Answer: B
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In a small country, the adult population equals 10,000. In that country, 8,000 people are in the labor force and 200 people are unemployed. The unemployment rate equals
A) 2.5 percent. B) 2 percent. C) 4 percent. D) an undetermined amount given the lack of information.
Compare and contrast the effect of perfect competition to the effect of perfect price discrimination on:
a. efficiency. b. consumer surplus. c. economic profit in the long run.
What are the properties of indifference curves?
What will be an ideal response?
In the two-period model with asymmetric information, a one-unit increase in the real rate of interest on bank deposits
A) causes the real loan interest rate to increase by more than one unit. B) causes the real loan interest rate to increase by less than one unit. C) cause the real loan interest rate to decrease by less than one unit. D) causes the real loan interest rate to decrease by more than one unit.