How would expansionary monetary policy affect the AD curve?
A) It would become more static. B) It would shift to the left.
C) It would fall. D) It would shift to the right.
D
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The table above gives information about the economy of Spain. If the growth rate in 1998 is maintained, real GDP will double in ________ years
A) 10 B) 18 C) 19 D) 4 E) 25
Looking at the average tariff rate in the United States since 1930, we see that
A) tariffs have trended downward for most of the period. B) tariffs were made illegal in the United States in 1955. C) tariff levels have remained high, at over 50 percent throughout the period. D) while we talk about free trade, tariff levels have risen over the last 30 years. E) at first tariffs declined, but have recently risen.
The distinction between sunk and incremental costs is most helpful in answering which question?
A) How many more people should be added to the production process? B) What is the correct price to charge? C) Should we begin to build a new factory? D) Should we continue developing a new software application that we began last year?
The long-run aggregate supply curve of an economy corresponds to
A) a point inside the production possibilities curve. B) a point outside the production possibilities curve. C) a point on the production possibilities curve. D) none of the above: there is no relationship between the long-run aggregate supply curve and the production possibilities curve.