Suppose a country's debt rises by 6% and its GDP rises by 8%. What happens to the debt-GDP ratio?
A) It rises if there is a budget deficit that period.
B) It falls.
C) It rises.
D) There is insufficient information to answer the question.
Ans: B) It falls.
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________ is fixed when moving along the aggregate supply curve
A) The real wage rate B) Real GDP C) Employment D) The price level E) The money wage rate
All else constant, as the price of petroleum increases relative to the prices of other inputs to the production process, in their effort to minimize their total costs of production, we can expect to see firms employ:
A) less of each of the inputs of production. B) more petroleum and less of the other inputs to production. C) less petroleum and more of the other inputs to production. D) the same amount of petroleum since there are no substitutes for petroleum.