Critics of supply-side economics claim that the economic growth in the 1980s was a direct result of ______.
a. a large budget deficit
b. deflation
c. tax cuts
d. tax increases
a. a large budget deficit
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The table above gives data for the nation of Pearl, a small island in the South Pacific. If a supply shock decreases the quantity of real GDP supplied by $6 billion at each price level, the new equilibrium real GDP is
A) $16 billion. B) $19 billion. C) $22 billion. D) $23 billion. E) $17 billion.
A change in the price of one good results in a rotation of the budget line around the point at which the consumer is currently consuming, so that it is steeper or flatter.
Answer the following statement true (T) or false (F)
Fixed exchange rates require the economic policies of countries linked by the exchange rate to be:
a. completely independent. b. complementary to each other. c. determined by the World Bank. d. similar in nature. e. determined by the International Monetary Fund.
If the opportunity cost of producing cheese is higher in Greece than in Italy,
a. Greece should specialize in producing cheese b. Italy should specialize in producing cheese c. both Greece and Italy should produce cheese but Italy should still export cheese to Greece d. Greece gives up fewer goods to produce cheese than Italy does e. both Greece and Italy should produce cheese but Greece should still export cheese to Italy