Which of the following will increase macroeconomic equilibrium prices?
A. an increase in productivity
B. an increase in taxes
C. an increase in input prices
D. a decrease in government spending
Answer: C
You might also like to view...
"The short-run Phillips curve shows the tradeoff between real GDP and inflation." Is the previous statement correct or incorrect? Briefly explain you answer
What will be an ideal response?
Inflation targeting was initiated by which central bank in 1989?
A) U.S. B) Japan C) Canada D) New Zealand E) U.K.
Aggregate demand includes: a. the demand for intermediate goods and final goods
b. all monetary and nonmonetary transactions. c. the demand for investment, including stocks, bonds, and gold. d. the demand for final goods and services.
In a proportional tax system each individual would pay the same percentage of his or her income in taxes
a. True b. False Indicate whether the statement is true or false