The aggregate demand curve shifts when any of the following factors change EXCEPT
A) monetary policy.
B) fiscal policy.
C) the price level.
D) expectations about the future.
E) foreign income.
C
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A hypothesis is
a. an assumption about behavior b. a prediction of what will occur given certain assumptions c. a prediction of what will occur regardless of assumptions d. a forecast of future events e. useful only if the assumptions are realistic
According to the quantity theory of money, if an economy produces 5,000 units of output, its money supply equals $40,000 and the velocity of money equals one, then the price level will equal:
a. $0.13. b. $1.25. c. $8. d. $200. e. $8,000.
The courts in some states have declared the financing of public schools by local property taxes unconstitutional because
a. housing should never be the basis for taxation of any kind. b. taxes on real estate generate too much tax revenue. c. disparity in property values means some communities have more in tax revenues to spend on education than do communities containing less valuable property. d. the funds for public education should come from federal revenues, not from local property taxes.
The quantity sold in a market will decrease if the government
a. decreases a binding price floor in that market. b. increases a binding price ceiling in that market. c. increases a tax on the good sold in that market. d. All of the above are correct.