Refer to Table 27-1. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should
A) increase the level of interest rates. B) decrease the money supply.
C) decrease government purchases. D) decrease income taxes.
D
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The cross-price elasticity of demand between Quaker State motor oil and Texaco motor oil is likely to be
A. a positive number. B. a small negative number. C. a large negative number. D. zero.
The price elasticity of demand changes as we move along a
a. horizontal demand curve. b. vertical demand curve. c. linear, downward-sloping demand curve. d. All of the above are correct.
Using the rule of 70, about how much would $100 be worth after 50 years if the interest rate were 7 percent?
a. $400 b. $800 c. $1,600 d. $3,200
New residential housing is placed under consumer expenditures in aggregate demand.
Answer the following statement true (T) or false (F)