If C = 2000 + .9YD, what decrease in taxes must occur for equilibrium output to increase by 1000?
A) 111
B) 100
C) 1000
D) 500
A
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
If the exchange rate depreciates, then the
A) demand for dollars decreases. B) quantity of dollars demanded decreases. C) supply of dollars decreases. D) demand for dollars increases. E) quantity of dollars demanded increases.
If future changes in stock prices are unpredictable, then we say that the stock prices follow a
A) random walk. B) straight and narrow path. C) meandering path. D) generalized walk.
Which of the following best represents economic growth?
A) an increase in nominal GDP B) an increase in real GDP C) an increase in the per capita nominal GDP D) an increase in the per capita real GDP