Alternating periods of economic growth and contraction are
A. The result of recurrent shifts of aggregate demand and aggregate supply.
B. The result of government intervention according to Keynes.
C. Not typical of the U.S. economy.
D. Indicative of an unstable economy and require government intervention according to classical economists.
Answer: A
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What is the opportunity cost of 1 tractor in terms of automobiles for the U.S. and Japan, respectively?
A. 0.5 automobiles and 2 automobiles
B. 0.5 automobiles and 1 automobile
C. 2 automobiles and 1 automobile
D. 2 automobile and .25 automobiles
Summarize examples of how a change in demand for one good can affect demand for a related good
What will be an ideal response?
The equation of exchange states that the quantity of money multiplied by the number of times this money is spent in a given year must equal
A) nominal income. B) real income. C) real gross national product. D) velocity.
If Japan has a comparative advantage over Canada in the production of computers, which of the following must be true?
a. Supply of unskilled labor in Japan is higher than that in Canada. b. Japan incurs a lower input cost in the production of computers. c. Japan incurs a higher input cost in the production of computers. d. Japan has a lower opportunity cost in the production of computers. e. Japan has a higher opportunity cost in the production of computers.