During normal times, discretionary fiscal policy
A) is probably not very effective in influencing real GDP due to time lags.
B) is more effective in influencing real GDP than automatic stabilizers.
C) works well because there are no lag problems in influencing real GDP.
D) is more effective in influencing real GDP than at times of a recession.
A
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Compared to prices charged by Uber, traditional taxi companies charge government-regulated prices. These government-regulated prices ________ in the market for shared rides
A) decrease producer surplus B) decrease consumer surplus C) increase consumer surplus D) decrease deadweight loss
Which of the following would cause a leftward shift in the investment function?
A) technological progress B) a reduction in the rate of interest C) optimistic expectations about business conditions D) an increase in business taxes
The AD curve shows that, as the price level falls the quantity of
A) GDP demanded increases. B) GDP demand decreases. C) Real GDP demanded increases. D) Real GDP demanded decreases. E) none of the above
Based on the information in Scenario 1, nominal GDP in 2015 in this economy was
A) $830. B) $1,025. C) $1,090. D) $1,345.