In the long-run, an increase in the budget deficit and an expansionary monetary policy would:
A) increase the price level only.
B) increase both the price level and real income.
C) increase real income only.
D) none of the above.
A
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According to the U.S. National Safety Council, a person has a better chance of being killed in which of the following situations?
A) in an aircraft accident B) from being electrocuted C) while riding a bicycle D) while walking
The paramount goal of a firm is to
A) maximize profit. B) maximize sales. C) maximize total revenue. D) minimize costs. E) force its competitors into bankruptcy.
A particularly attractive feature of the ________ is that it tells you what the market is predicting about future short-term interest rates by just looking at the slope of the yield curve
A) segmented markets theory B) expectations theory C) liquidity premium theory D) separable markets theory
Which of the following curves reflects the idea that in the long run, output is determined only by the factors of production and given technology?
A. the aggregate demand curve B. the market supply curve C. the long-run aggregate supply curve D. the Keynesian aggregate supply curve