Starting from short-run equilibrium, the following occurs: personal income taxes rise and foreign real national income rises. What is the effect on the price level and Real GDP in the short run?
A) The price level rises and Real GDP falls.
B) The price level falls and Real GDP falls.
C) The price level rises and Real GDP rises.
D) The price level falls and Real GDP rises.
E) There is not enough information to answer this question.
E
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The amount the government budget deficit would be if the economy were at full employment is known as the
A) primary deficit. B) full-employment deficit. C) natural deficit. D) current deficit.
If the marginal productivity of labor decreases, then
A) the quantity of labor demanded at every possible wage rate will be less. B) the quantity of labor demanded at every possible wage rate will be higher. C) the quantity of labor demanded will not be affected. D) the demand curve for labor will shift upward and to the right.
The smaller the share of the fringe firms in an oligopoly market, the smaller will be the profit earned by the dominant firm
Indicate whether the statement is true or false
Marquis borrowed $1,000 from Ayana for a year and agreed to repay her $1,050 at the end of the year. If the inflation rate was 3 percent, what is the real rate of interest Ayana received?
a. 10 percent b. 5 percent c. 3 percent d. 2 percent e. -2 percent