A government budget surplus from reduced government spending (no change in net taxes) will ________ the level of investment in the economy and ________ the level of saving (private plus public) in the economy
A) increase; decrease B) increase; increase C) decrease; decrease D) decrease; increase
B
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
According to new growth theory, technological change is driven by
A) random chance. B) government policies. C) foreign firms' attempts to increase their sales in the domestic market. D) firms' attempts to increase their profit.
When economists talk about supply, they are referring to a relationship between price received for each unit sold and the _________________.
A. demand schedule B. market price C. quantity supplied D. demand curve
Which of the following is most likely to be predicted by the Heckscher-Ohlin theory?
A. The wage rate of the low-skilled workers will be higher in the developing countries than in the developed countries. B. The industrialized nations will mainly export labor-intensive goods. C. Countries like China will completely specialize in the production of primary products. D. The developing countries will mainly export labor-intensive goods.