Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential
B. expansionary; higher; potential
C. recessionary; lower; potential
D. recessionary; lower; lower
Answer: C
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Suppose you pay $290.00 for a new tablet computer. This is an example of
A) money as a store of value. B) money as a standard of deferred payment. C) barter. D) money as a medium of exchange.
The chairman of the Federal Reserve Board of Governors
A) is appointed by the President and confirmed by the Treasury. B) serves a fourteen year term as chairman. C) sits on the Federal Open Market Committee. D) is always the president of the Federal Reserve Bank of New York.
If an increase in the price of Product X causes an increase in the demand for Product Y, we can conclude that: a. Products X and Y are complements. b. Products X and Y are substitutes
c. Products X and Y are normal goods. d. The price of Product Y will decrease.
As the U.S. price level rises relative to price levels in other countries, what would happen in the U.S.?
a. consumption and net exports would decline b. consumption and net exports would increase c. consumption would increase and net exports would decrease d. consumption would decrease and net exports would increase e. consumption and net exports would remain constant