Suppose the economy is initially operating at full employment. A reduction in the size of the budget deficit will cause which of the following in the short run?
A) a recessionary gap.
B) an increase the price level and a reduction in real GDP.
C) an increase in the price level with no change in real GDP.
D) an increase in real GDP and an increase in the price level.
A
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A group of physicians that provides medical services to members for a fixed annual fee is termed a:
A. fee-for-service plan. B. partnership. C. health management organization. D. health maintenance organization.
Credit cards are NOT a part of the M1 or M2 money supply
Indicate whether the statement is true or false
If the U.S. government imposes a tariff on imported steel, who else besides U.S. steel producers gains from the tariff?
A) U.S. steel consumers B) the U.S. government C) U.S. importers of steel D) foreign exporters of steel E) the foreign government
An insurance company requires homeowners it insures to have smoke detectors in their homes. The insurance company is trying to combat the
A. adverse selection problem. B. the free-rider effect. C. moral hazard problem. D. "lemons" problem. E. none of the above