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ECON100 Sample MTII
ECON100 Sample MTII

... d) Because the complexities of reality are unimportant e) Because economists are not interested in reality 5. In a co-ordinate graph, with Y on the vertical axis and X on the horizontal axis, the variable X is positive and the variable Y is negative in the ________ quadrant. a) top, right b) top, le ...
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Fiscal Policy, Deficits, and Debt

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... The first pillar, growth of the money supply, showed a continued moderation in the annual growth of M3. Its three-month moving average declined to 5.0% in the period from November 2000 to January 2001, from 5.1% recorded in the period from October to December 2000. Overall, the risks to price stabil ...
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Recession

In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
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