The BP curve is upward sloping if assets are perfectly substitutable
Indicate whether the statement is true or false
FALSE
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Unit taxes vary along with the price of the taxed commodity.
A. True B. False C. Uncertain
Other things being equal, demand is less elastic
A) the more expensive the good is. B) the smaller the percentage of a total budget that a family spends on a good. C) the longer is the time period for adjustment. D) the more substitutes a good has.
The effect of an increase in aggregate supply is a(n):
a. increase in the general level of prices and a decrease in real output. b. increase in the general level of prices and an increase in real output. c. decrease in the general level of prices and a decrease in real output. d. decrease in the general level of prices and an increase in real output.
The Federal Reserve Bank attempted to deal with the sluggish aggregate demand that followed the housing market crash and subsequent financial crisis through:
A. contractionary fiscal policy. B. contractionary monetary policy. C. expansionary monetary policy. D. expansionary fiscal policy.