In a closed economy with fixed or autonomous (non-income dependent) taxes, the balanced budget government purchases multiplier is negative
Indicate whether the statement is true or false
FALSE
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Use headlines from the recent news to illustrate the potential for conflict between self-interest and the social interest
What will be an ideal response?
An economic system includes
a. money, stocks and bonds b. a mechanism for allocating resources and a mode of resource ownership c. a mechanism for dividing up resources and a way to ensure that technology advances d. a mechanism for allocating stocks, bonds and money and a mode of technology e. government ownership, labor time, and machines
Trade flows measure the:
A. movement of resources between nations. B. exports and imports of goods and services. C. transfer of information from one nation to another. D. transfer of money between nations.
Which of the following was one of the likely causes of the productivity problem of the 1970s?
A. a reduction in government regulation B. an increase in research and development spending C. rapid growth in investment spending D. low saving rates