An increase in taxes will immediately shift
A. aggregate demand to the left.
B. aggregate demand to the right.
C. aggregate supply to the left.
D. aggregate supply to the right.
Answer: A
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During an expansion, how do inflation and unemployment typically change?
A) Inflation and unemployment both fall. B) Inflation falls and unemployment rises. C) Inflation and unemployment both rise. D) Inflation rises and unemployment falls.
A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price lower than the original equilibrium b. A market equilibrium price higher than the short run price c. Some firms exiting the market d. All of the above
What is meant by the demand for money?
What will be an ideal response?
Which of the following goods and services are omitted from GDP?
A) household production B) expenditure on resources used to protect the environment C) services such as hair styling D) government weather satellites E) capital goods