The AD curve shifts to the right with a __________ in government purchases (G) or a __________ in taxes
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
B
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Which is not a characteristic of a good economic model?
A. Focuses on important details B. Predicts cause and effect C. Utilizes vague assumptions D. Describes the world accurately
Suppose that FDI has "spillover" benefits for the recipient nation (such as spurring technological innovation, more FDI, or growth in labor productivity). These spillover effects might help explain why:
a. in Singapore, wages fell in the short run. b. in Singapore, wages fell and returns to capital rose in the long run. c. in Singapore, wages rose and, depending on the calculation used, returns to capital were close to original levels in the long run, which contradicted the HO model. d. in Singapore, absolutely nothing changed in either the short or the long run.
In the above figure, when real disposable income is less than 600, then
A. the MPC will fall. B. consumption is less than disposable income. C. consumption is the same as disposable income. D. consumption is more than disposable income.
From 1990 to 2013, mortality under age 5 has ________ and the literacy rate has ________ in China.
A. increased; decreased B. decreased; increased C. decreased; decreased D. increased; increased