An unexpected decrease in aggregate demand
A) will decrease long-run aggregate supply.
B) will decrease the average duration of unemployment.
C) will decrease the price level.
D) will decrease real GDP, but will not affect the rate and duration of unemployment.
C
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If a person completely smooths consumption over his lifetime, then consumption is best represented by which of the following?
A) wealth / the number of years the person expects to live B) lifetime income / the number of years the person expects to work C) (wealth + lifetime income) / the number of years the person expects to live D) (wealth + lifetime income) / the number of years the person expects to work
Intense market competition is ________ for producers, since it_______
a. Bad; erode consumer surplus b. Bad, erode producer profits c. Good, increase the price level in the market d. Good; decrease the price level in the market
An example of a seller in a financial market would be:
A. families buying new cars B. individuals who have a savings account. C. entrepreneurs starting new ventures. D. the government when it needs to finance public spending.
Based on our understanding of the model presented in Chapter 3, we know with certainty that an equal and simultaneous increase in G and T will cause
A) an increase in output. B) no change in output. C) a reduction in output. D) an increase in investment.