Consider the small, open economy with perfectly mobile capital depicted in Figure 1.  If the world’s equilibrium real interest rate is currently 10%, then this country will

In an open economy, the domestic loanable funds market is in equilibrium if and only if __________.

In 2004, four major hurricanes struck Florida and left a wide area of severe damage. Which of the following most accurately indicates how GDP was influenced by the hurricanes?

You are told that the Natural Rate of Unemployment for Canada is 4%, but the country currently has an unemployment rate of 7%. According to Okun’s Law, this extra unemployment is causing Canada to sacrifice the production of approximately _______ of its Real GDP.

Suppose you wanted to compare the nation’s output between year 2000 and year 2020. Which statistic would be the most appropriate statistic to use?

What is the value of Real GDP for 2007, expressed in base year prices?

What is the value of the Marginal Propensity to Consume (MPC)?

Suppose the US economy falls into recession and state/local government experience a decrease in the amount of tax revenue collected. How will the US economy be impacted by this event?

You are told that the Natural Rate of Unemployment for Canada is 4%, but the country currently has an unemployment rate of 7%. According to Okun’s Law, this extra unemployment is causing Canada to sacrifice the production of approximately _______ of its Real GDP.

According to John Keynes, Cyclical Unemployment is caused by: