The two phases of the business cycle are
a. high economic growth and low economic growth
b. expansion and contraction
c. expansion and depression
d. high inflation and low inflation
e. potential economic growth and actual economic growth
Refer to Figure 9-11. Which of the following would be most likely to move a less
developed country from point E to point C?
a. forcing the wealthy to reduce their consumption without reducing consumption for
the rest of the population
b. reducing the population growth rate
c. a consumption tax
d. a tax on financial transactions
e. decreasing the interest rate
If a new insect invasion devastates crops all across the United States, which of the
following would most likely occur in the short run?
a. Unit costs would decrease and the economy would move upward along the aggregate
supply curve.
b. Unit costs would increase and the aggregate supply curve would shift downward.
c. Unit costs would increase and there would be movement along the aggregate supply
curve.
d. Unit costs would decrease and the aggregate supply curve would shift upward.
e. Unit costs would increase and the aggregate supply curve would shift upward.
Debt held by the public and total debt are two different concepts.
Increases in the general price level are primarily a macroeconomic issue.
In the short-run macro model, if GDP is $5 trillion and aggregate expenditure is $4
trillion,
a. GDP will rise because inventories will rise
b. GDP will fall because inventories will fall
c. GDP will remain the same because this is an equilibrium
d. investment will decrease
e. the government will have to increase taxes
A natural monopoly occurs when
An increase in the supply of labor will, everything else equal,
a. increase the real wage rate and increase employment
b. increase the real wage rate and decrease employment
c. reduce the real wage rate and increase employment
d. reduce the real wage rate and decrease employment
e. increase the demand for labor and increase employment
Wally’s Wheat Farm sells its output and hires its labor in perfectly competitive markets.
In the short run, Wally can vary only one input-labor. In short-run equilibrium, all of the
following conditions, except one, will be satisfied. Which is the exception?
Which of the following helps to classify an industry’s market structure?
The principle of specialization and exchange implies that
Which of the following would lead to a rightward shift of the money demand curve?
a. Expectations that the interest rate will fall
b. New substitutes for money become popular
c. The use of electronic money increases
d. Substitutes for money become less popular
e. The use of credit cards increases