The productivity growth rates of richer countries tend to be ____ than those of poorer countries

What effect would economic weakness in Europe due to a sovereign debt crisis have on the U.S. economy?

A) IS shifts to the right B) IS shifts to the left C) potential GDP increases D) potential GDP decreases

Assume the government decides to reduce spending in order to reduce the budget deficit, which it financed by borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?

a. Start the analysis in the real goods market with aggregate demand shifting to the left. b. Start the analysis in the real goods market with aggregate demand shifting to the right. c. Start the analysis in the real goods market with aggregate supply shifting to the left. d. Start the analysis in the real goods market with aggregate supply shifting to the right. e. Start the analysis in the real credit market with demand for real credit shifting to the left.