Suppose the economy is in long-run equilibrium. Senator A succeeds in getting taxes raised. At the same time, Senator B succeeds in getting major restrictions on logging removed. In the short run
a. real GDP will rise and the price level might rise, fall, or stay the same.
b. real GDP will fall and the price level might rise, fall, or stay the same.
c. the price level will rise, and real GDP might rise, fall, or stay the same.
d. the price level will fall, and real GDP might rise, fall, or stay the same.
d
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Why do some utilities have an incentive to exaggerate their costs of production?
What will be an ideal response?
Direct investment and security purchases are included in
A) current account items. B) capital account items. C) basic balance account items. D) unilateral transfers.
Assume the economy is operating at a real GDP above full-employment real GDP. Keynesian economists would prescribe which of the following policies?
a. Nonintervention b. Fixed rule c. Contractionary d. Expansionary
In goods market equilibrium in an open economy,
A. the desired amount of national saving must equal the desired amount of domestic investment plus the amount lent abroad. B. the desired amount of exports must equal the desired amount of imports. C. the desired amount of exports must equal the desired amount of imports less the amount lent abroad. D. the desired amount of national saving must equal the desired amount of domestic investment.