Question 1
A government increases spending on roads and bridges during a recession. Which outcome is most likely in the short run?
Question 2
If households decide to save more and spend less at every income level, what is the most likely effect on $aggregate demand$?
Question 3
A country experiences a rise in the price of imported oil. What is the most likely short-run effect on the economy?
Question 4
Which statement best describes inflation?
Question 5
A country is producing at a level below its full capacity. Which term best describes this situation?
