Other things equal, an increase in aggregate demand will result in:
a. an economic expansion.
b. higher unemployment and a lower equilibrium price level.
c. an economic recession.
d. a decrease in equilibrium real GDP and an increase in the equilibrium price level.
e. a decrease in the overall economic welfare.
a
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A regressive tax means that if someone earning $25,000 pays $5,000, someone earning $50,000 must pay
A. less than $5,000. B. more than $15,000 but less than $20,000. C. less than $10,000. D. more than $10,000 but less than $15,000.
Compared to a single-price monopoly, the output of a perfectly competitive market with the same costs
A) is more than the monopoly's output. B) is the same as the monopoly's output. C) is less than the monopoly's output. D) could be more than, less than, or equal to the monopoly's output.
What type of loan led the wave of bank lending in the 1970s and 1980s?
A) consumer loan B) commercial mortgage C) loans to state and local governments D) commercial paper
A ten percent increase in total factor productivity A will increase ________
A) the marginal product of capital (MPK) by ten percent B) the marginal product of labor (MPL) by ten percent C) output by ten percent D) all of the above E) none of the above