(03.09 LC) Which of the following is the result of automatic fiscal stabilizers that help an economy recover from inflationary periods?

(01.01–01.03, 05.06 HC) Assume that Athens and the Sparta use equal resources to produce consumer and capital goods, as illustrated in the table below showing maximum possible production figures. Country Capital Goods Consumer Goods Athens 70 units 210 units Sparta 50 units 100 units Draw a fully labeled production possibility curve for Athens. Place capital goods on the vertical axis and consumer goods on the horizontal axis. Assume constant opportunity cost. On your graph from part (a), label an inefficient point of production I, an efficient point of production E, and an unattainable point of production U. Which country has the comparative advantage in the production of consumer goods? Explain. If Athens shifted from producing 50 units of capital goods and 60 units of consumer goods to producing 60 units of capital goods and 30 units of consumer goods, what would be the impact on its economic growth in the long run? Based on the data table, what range of capital goods could be traded for 60 units of consumer goods that would be mutually beneficial?

(02.03 MC) Jane was fired from her job as a waitress at a restaurant due to a recession. How will Jane be categorized when computing the unemployment rate?

(02.04 HC) Assume that only two goods, A and B, are produced in an economy. In the base year, 5 units of A are produced for a price of $4, and 5 units of B are produced for a price of $6. And in a given year, 5 units of A are produced for a price of $5, and 5 units of B are produced for a price of $9. What is the CPI for the given year?

(02.04 MC) A consumer price index going from 140 in year 1 to 130 in year 2 means the economy is experiencing

(02.07 LC) At the current equilibrium real GDP, there is a recessionary output gap. Which of the following must be true?

(02.01 LC) The circular flow model of the economy divides economic activity into two broad categories, which are

(02.04 HC) Use the table to answer the question that follows. Year Price of X Quantity of X Price of Y Quantity of Y 1 $8 5 $9 7 2 $5 5 $7 7 The economy produced only two goods with the prices and quantities of each good for year 1 and year 2 shown in the table. Which of the following describes the state of the economy in year 2?

(02.07 LC) Which of the following is true if the economy is producing above the full employment level?

(02.01 LC) Which of the following is true regarding the circular flow model used to explain the GDP?