In the short run, ________
A) cost push shocks can cause firms to raise prices
B) workers pushing for higher wages may lead to increases in inflation
C) the aggregate supply curve may shift to the left with increases in expected inflation
D) all of the above
E) none of the above
D
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A rise in autonomous planned investment spending causes the equilibrium level of aggregate output to ________ and shifts the ________ curve to the ________, everything else held constant
A) rise; LM; right B) rise; IS; right C) fall; IS; left D) fall; LM; left
In July 2010, what was the total value of U.S. currency in circulation?
A) $500 million B) $150 billion C) $1080 billion D) $6 trillion
Suppose you are traveling from the United States to Djibouti on vacation. You would be better off on your vacation if:
a. exchange rates did not change after you bought Djiboutian francs. b. you had purchased Djiboutian francs in Djibouti and not in New York. c. the Djiboutian franc became more powerful with respect to the U.S. dollar. d. the exchange rate increased. e. the exchange rate decreased.
Define the following terms and explain their significance to the study of macroeconomics:
a. fiscal policy b. transfer payments c. effect of income taxes on the multiplier d. supply-side tax cuts