Over time, an increase in a nation's stock of physical capital will
a. shift the production possibilities curve inward.
b. cause an economy to operate inside its production possibilities curve.
c. shift the production possibilities curve outward.
d. eliminate the basic economic problem of scarcity.
C
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
A decrease in the foreign real interest rate would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________
A) rise; shift up B) rise; shift down C) fall; shift up D) fall; shift down
Although it does not have the legitimacy of judgments by the ICJ, another effective method of judging violations of international law, particularly for powerful states, is
a. evaluation by the UN Security Council. b. analysis by the U.S.-backed International Law Commission. c. unilateral determination of violations by states themselves. d. review by the European Union Parliament
An explanatory variable is called exogenous if it is correlated with the error term.
Answer the following statement true (T) or false (F)