In the Keynesian model with a fixed money wage but a flexible price level, an increase in taxes will lower
a. output and the price level, but leave the interest rate unchanged.
b. output, the price level and the interest rate.
c. output and the interest rate, but leave the price level unchanged.
d. output and the price level, but increase the interest rate.
e. the price level and the interest rate, but leave output unchanged.
B
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One problem with NAFTA that is not shared by other trade blocs is that
A) national environmental laws differ greatly. B) the countries are at very different stages of economic development. C) the countries speak different languages. D) the countries are not natural trading partners. E) the United States and Mexico have a history of conflict.
What is a government attempting to do by charging a gasoline tax?
a. Reduce the number of free riders who use public roads b. Encourage private firms to develop public goods c. Discourage free riders from using toll roads d. Shift the demand for gasoline to reduce consumption
A macroeconomist - as opposed to a microeconomist - would study
a. the effects of rent control on housing in New York City. b. the effects of foreign competition on the US auto industry. c. the effects of borrowing by the federal government. d. the effects of raising the gasoline tax on transit ridership.
Which of the following occupations would a major in economics be useful for?
A. management-analyst B. real estate appraiser C. financial analyst D. All of these are correct.