Refer to the above figure. Government policy that moved the economy from A to B would be accomplished by
A) a contractionary fiscal policy combined with an expansionary monetary policy.
B) an expansionary fiscal policy combined with a contractionary monetary policy.
C) a contractionary policy that would reduce the rate of inflation and would cause workers to remain unemployed longer than they were before.
D) raising the minimum wage.
C
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Which of the following is included in both the U.S. GDP and U.S. GNP?
A) the value of all cars produced by Nissan in Japan and the United States B) the value of all cars produced by Ford in Mexico C) the value of all cars produced by Toyota in the United States D) the value of all cars produced by General Motors in the United States
For U.S. consumers, the income elasticity of demand for fruit juice is 1.1. If the economy enters a recession next year and consumer income declines by 2.5%, what is the expected change in the quantity of fruit juice demanded next year?
A) -2.75% B) +2.75% C) -27.5% D) +27.5%