The Fed initiates a contractionary monetary policy that is correctly anticipated by economic agents in the economy. The result is
A) decreased prices, but no change in real GDP.
B) decreased prices and decreased real GDP in the short run, but only decreased prices in the long run.
C) decreased real GDP in the short run and decreased prices in the long run.
D) decreased real GDP and prices in both the short run and the long run.
A
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If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy?
A) an increase in oil prices B) an increase in taxes C) an increase in government spending D) a decrease in the money supply and an increase in the interest rate
The marginal rate of technical substitution is equal to:
A) the absolute value of the slope of an isoquant. B) the ratio of the marginal products of the inputs. C) the ratio of the prices of the inputs. D) all of the above E) A and B only
According to your text, which of the following represents the largest source of tax receipts for the Federal government?
A) sales taxes B) individual income taxes C) corporate income taxes D) property taxes
When the dollar appreciates, U.S
a. exports decrease, while imports increase. b. exports and imports decrease. c. exports and imports increase. d. exports increase, while imports decrease.