Which of the following would decrease the price level?

a) an increase in the expected price level.
b) an increase in the natural rate of unemployment.
c) a decrease in taxes.
d) a decrease in the money supply.


Ans: d) a decrease in the money supply.

Economics

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If the economy is growing 3% a year and the government increases the ratio of interest on the national debt to GDP, we may conclude that

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Bonds with ________ tend to have lower interest rates than bonds with ________

A) high liquidity; low liquidity B) high default risk; low default risk C) longer maturity; shorter maturity D) high tax burdens on their interest; low tax burdens on their interest

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If a monopolistically competitive firm decides that its cost and revenue data indicate that it should not shut down, it will end up producing where

a. MR > AVC b. MR > ATC c. MR > MC d. MR = P = ATC = MC e. MR = MC

Economics

Supply is very inelastic if the quantity supplied cannot respond quickly to an increase in price.

Answer the following statement true (T) or false (F)

Economics