Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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Foreign factories produce ________ of the shoes New Balance sells in the United States
A) none B) less than 15 percent C) roughly half D) about 75 percent
An important effect of foreign currency speculators is that
a. they have consistently lost money and have left the market. b. they have pushed exchange rates to wider extremes than most economists predicted. c. they actually limit the volatility of exchange rate movements. d. they have had no effect at all on exchange rate volatility.
With regard to GDP, residential property taxes are an example of ____ taxes.
A. variable B. sales C. fixed D. disposable
Tariffs imposed upon U.S. rice imported into Japan tend to
A. harm Japanese consumers and help Japanese rice producers. B. help Japanese consumers and harm Japanese rice producers. C. harm U.S. consumers and harm Japanese rice producers. D. help U.S. consumers and harm Japanese rice producers.