U.S. unemployment as a result of freetrade agreements such as NAFTA
a. should be taken much more seriously, and workers should be offered assistance.
b. is a temporary phenomenon to which the economy will adjust within a few years.
c. results in a shift into lower productivity jobs such as hamburger flipping.
d. results in a shift into lower productivity jobs such as hamburger flipping and is a temporary phenomenon to which the economy will adjust within a few years.
Answer: b. is a temporary phenomenon to which the economy will adjust within a few years.
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Refer to Figure 23-3. Suppose that government spending increases, shifting up the aggregate expenditure line. GDP increases from GDP1 to GDP2, and this amount is $200 billion. If the MPC is 0.8, then what is the distance between N and L or by how much did government spending change?
A) $16 billion B) $40 billion C) $200 billion D) $1,000 billion
Suppose two countries are identical in every way with the following exception. Economy A has a higher rate of depreciation (?) than economy B. Given this information, we know with certainty that
A) steady state consumption in A is higher than in B. B) steady state consumption in A is lower than in B. C) steady state consumption in A and in B are equal. D) steady state growth of output per worker is higher in A than in B. E) none of the above