Supply-side economics focuses on ________
A) the positive effect of tax cuts on aggregate supply
B) the impact of an increase in the rate of inflation on aggregate supply
C) the impact of changes in aggregate supply on market demand
D) the trade-off between aggregate demand and aggregate supply
A
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As the market price of a service increases, more potential sellers will decide to perform that service because:
A. more potential sellers will find that the market price exceeds their reservation price. B. higher prices result in higher revenue. C. it's more prestigious to produce high-priced services. D. higher prices lead to lower opportunity costs.
If policymakers are expected to increase the money supply, Monetarists argue that there is __________ effect. There is __________ effect that raises prices when the money supply actually increases
A) a small liquidity; an income B) no; an income C) a small income; a liquidity D) no; a liquidity
The U.N. has established a Millennium Poverty Goal of cutting in half by 2015 the number of people in extreme global poverty.
Answer the following statement true (T) or false (F)
If real GDP in a year was $20 trillion and the price index was 120, then nominal GDP in that year was approximately:
a. $30 trillion b. $24 trillion c. $12 trillion d. $10 trillion