The disparity in child mortality rates between the Global North and the Global South
A. has more than tripled over the past 25 years.
B. remains very high.
C. has been cut roughly in half in percentage terms.
D. has virtually disappeared.
Answer: B
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In order to move aggregate demand to the level consistent with full employment by means of fiscal policy, government officials who set the budget must know
A) the current level of aggregate demand. B) the level of aggregate demand that would be consistent with full employment. C) the size of the budget changes required to induce the appropriate-sized changes in aggregate demand. D) all of the above.
When the policy rate increases,
A) IS curve does not change. B) IS curve shifts to the right. C) IS curve shifts to the left. D) LM curve shifts upward. E) LM curve shifts downward.
The circular flow model illustrates the crucially important idea of macroeconomics, which is that:
A. every expenditure of someone in the economy is exactly equal to the income of another. B. only two markets exist in every economy—input and output. C. income is lower when there is more spending on goods and services. D. the flow of two things in the economy—"stuff" and "money"—travel in the same direction.
Studying money and banking through five core principles is helpful because:
A. studies have shown students have a difficult time remembering more than five topics. B. money and banking can undergo drastic changes overtime, but the five principles do not. C. everything in economics can be reduced to five core principles. D. these five principles are understood by everyone.