In the basic Keynesian model, a decrease in government purchases:
A. reduces potential output.
B. increases potential output.
C. increases short-run equilibrium output.
D. reduces short-run equilibrium output.
Answer: D
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Refer to the figure above. In free trade A will import
A) 700 units from country C. B) 700 units from C and 600 units from B. C) 600 units from C. D) 600 units from C and 400 units from B.
A decrease in government purchases of goods and services is an example of...
What will be an ideal response?
The major difference between government and governance is that governance is
A. institutional only. B. institutional and networked. C. institutional and global. D. networked and privatized.
Sale of a popular energy drink called 7D was banned in Bonland after a study revealed that one of its ingredients increases the risk of cancer. This legislation is an example of ________
A) paternalism B) consumer sovereignty C) indirect regulation D) internalization of externalities