Which of the following pairs of policies shift aggregate demand in the same direction?
a. A tax increase and an increase in the money supply
b. A transfer payment decrease and an increase in the money supply.
c. A reduction in government purchases and decline in the money supply.
d. An increase in government purchases and a decline in the money supply.
c
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Which of the following statements is true?
A. There was a great deal of stagflation in the 1930s. B. The inflation rate fell during the Eisenhower Administration, but rose during the Reagan years. C. Output in the United States fell by about one-third between 1929 and 1933. D. The Medicare and Medicaid programs were inaugurated during the New Deal.
Suppose the economy is initially in equilibrium where real GDP equals potential GDP and the inflation rate is at the target rate. Other things equal, a housing boom will cause aggregate expenditures to increase, which will result in
A) an increase in aggregate demand and an increase in the inflation rate. B) an increase in aggregate supply and an increase in the inflation rate. C) an increase in aggregate demand and a decrease in the inflation rate. D) an increase in aggregate supply and a decrease in the inflation rate.
Suppose Bev's Bags makes two kinds of handbags-large and small. Bev rents an industrial space where she keeps the fabric, the industrial sewing machine, her measuring board and cutting shears, extra needles, thread and buttons, and labels. Which of the following would be considered a variable cost of this company?
A. The cutting shears B. The fabric C. The rent D. None of these would be considered a variable cost.
One type of factor of production is physical capital. All of the following are examples of physical capital EXCEPT
A) buildings B) machinery C) AM/FM radios D) a hydroelectric power plant