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.
You might also like to view...
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
A) the output ratio will fall. B) additional interest payments exceed 3% of GDP. C) tax revenues will fall. D) the Laffer curve will be inoperable.
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
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
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)