Suppose the government increases government spending. Which of the following will tend to occur as a result of this policy in a Keynesian model?
A. an inflationary gap
B. a movement along the short-run aggregate supply curve
C. demand-pull inflation
D. all of these
Answer: D
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In which of the following cases is the slope of a line positive?
A) As x increases, y increases. B) As x increases, y decreases. C) As x increases, y remains the same. D) As x increases, y equals a positive number.
If a corporation goes bankrupt, who among the following has first claim on the firm's assets?
A) bondholders B) stockholders C) the state where chartered D) employees
Which of the following is NOT a disadvantage of controls on capital outflows?
A) The controls may lead to excessive risk taking by the domestic banks. B) They are seldom effective during a crisis. C) Capital flight may increase after they are put in place. D) Controls often lead to an increase in government corruption.
If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is: a. 8 percent
b. 38 percent. c. 10.9 percent. d. 28 percent.