A major theme in economics is:
a. People can increase resources by limiting their economic wants
b. People have limited economic wants and limited resources
c. People have unlimited economic wants, but limited resources
d. Unlimited resources and unlimited economic wants
c. People have unlimited economic wants, but limited resources
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Compared to the other sources of spending, net exports is
A) large and negative. B) small and negative. C) large and positive. D) small and positive.
The more elastic the supply curve, _____
a. the greater the tax evasion b. the more suppliers have to bear the tax burden c. the more suppliers can shift the tax burden to demanders d. the more demanders shift the supply curve
If both real GDP and nominal GDP of a country increased at the same rate in a particular year, which of the following is most likely to have taken place?
a. Output increased and the price level increased b. Output increased and the price level decreased c. Output decreased and the price level increased d. Output decreased and the price level decreased e. Output increased and the price level remained constant
The money multiplier:
A. Is equal to the required reserve ratio times transactions deposits. B. Gets larger as the required reserve ratio increases. C. Is the reciprocal of the required reserve ratio. D. Represents the lending capacity of an individual bank.