A contractionary monetary policy shifts the LM curve to the ________, reducing ________, everything else held constant
A) left; output and increasing interest rates
B) left; both real output and interest rates
C) right; both interest rates and real output
D) right; interest rates and increasing real output
A
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Which of the following correctly describes incentives?
A) Incentives refer to the maximum price that a buyer is willing to pay for a good. B) Incentives are rewards or penalties that motivate people to behave in a particular way. C) Incentives are prices that are fixed by the government and not by market forces. D) Incentives refer to the minimum price at which a seller is willing to sell a product.
GDP per person tells us the income and expenditure of the
a. richest person in the economy. b. poorest person in the economy. c. average person in the economy. d. entire economy.
Which of the following affects both the marginal and average total cost curves of a firm in the short run?
A. A change in consumer income. B. A change in property taxes. C. A change in profit taxes. D. A change in payroll taxes.
Refer to the budget line shown in the diagram. The absolute value of the slope of the budget line is
What will be an ideal response?