If there are steady decreases in aggregate supply, the economy will experience
A) a slow decrease in price levels.
B) demand-side inflation.
C) an expansionary gap.
D) supply-side inflation.
D
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Assuming a long-run aggregate supply curve, an increase in the money supply results in ________ in output and ________ in price level
A) an increase; no change B) a decrease; no change C) a decrease; a decrease D) no change; an increase
Which of the following policies encourages economic growth?
A) increased taxes on income and business profits B) limiting the years people spend in education so that they can start productive work C) reduction of government support of higher education D) creation of tax free savings accounts E) high tariffs and strict import quotas on foreign-made products
Which of the following is ALWAYS true when a single-price monopolist maximizes its profit?
A) P = MC B) P = MR C) MR = MC D) MC = ATC E) P > ATC
Advertising intended to induce a consumer to discover a previously unknown taste or preference is
A) persuasive advertising. B) informational advertising. C) direct advertising. D) mass marketing advertising.