What is mostly likely to happen if decreased government borrowing drives down real interest rates in the United States?
What will be an ideal response?
The dollar will depreciate leading to an increase in net exports
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Equilibrium in the Keynesian model is
a. quite stable, unless the government does something to throw it off balance. b. stable as long as planned injections are equal to planned leakages. c. not affected much by taxes or government spending. d. not a significant concept in Keynesian analysis.
For a monopolist,
a. average revenue is always greater than the price of the good. b. marginal revenue is always less than the price of the good. c. marginal cost is always greater than average total cost. d. marginal revenue equals marginal cost at the point where total revenue is maximized.
Which of the following should be used to compare the incomes of countries with sizable differences in cost of living?
A) Gross national product B) Income per working age population C) Exchange rate-based measure of income per capita D) PPP-based measure of income per capita