Crowding out occurs when
A) investment increases as government spending falls.
B) investment increases when government spending rises.
C) investment decreases when government spending falls.
D) investment decreases when government spending rises.
D
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The short-run Phillips curve is downward sloping because
A) the expected inflation rate is zero in the short run. B) the economy always returns to full employment. C) reducing the unemployment rate will reduce the inflation rate in the short run. D) in the long run, the expected inflation rate equals the actual inflation rate. E) the unemployment rate can be above or below the natural unemployment rate.
According to the graph shown, if this economy were an autarky, consumers would get area:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. A in consumer surplus.
B. ABC in consumer surplus.
C. ABCD in consumer surplus.
D. ABCDEFG in consumer surplus.
Demand curves are downward sloping, reflecting the fact that people will buy
a. less as the price decreases b. more as the price increases c. the same quantity regardless of price d. more as the price decreases e. less as incomes decrease
According to economist Arnold Kling's perspective on the economy, economic activity is best viewed by focusing on
A) aggregate demand. B) the actions of the Federal Reserve. C) changes in spending. D) specialization and trade.