The "crowding-out" debate refers to the disagreement between Keynesians and conservative economists about whether
A. spending for national defense causes reductions in the spending for social welfare.
B. government contracts with suppliers of military weapons results in unfair competition with non-defense related industries.
C. increased government borrowing has an adverse effect on private investment spending.
D. restrictive monetary policy makes expansionary fiscal policy ineffective.
C. increased government borrowing has an adverse effect on private investment spending.
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The table above gives data for the nation of Mosh. If real GDP is $6 trillion, then
A) firms increase production because inventories are less than their target levels. B) the economy has reached equilibrium and no change in production will occur. C) firms increase production because inventories exceed their target levels. D) firms decrease production because inventories exceed their target levels. E) We need more information to determine whether firms increase, decrease, or do not change their production.
Twenty-nine countries in Europe have eliminated all tariffs with each other. This group of countries is known as the
A) Gruppo Euro. B) European Union. C) United Federation of Europe. D) European Free Trade Association.
Figure 11-6
The profit-maximizing monopolist in Figure 11-6 will sell its output at
A. P1. B. P2. C. P3. D. P4.
In the Edgeworth box shown below, 
A. the relative prices shown will bring equilibrium without changing. B. there is more clothing demanded than is available. C. there is more food demanded than is available. D. there is less food demanded than is available.