Assuming government wishes to either increase or decrease the level of aggregate demand, which of the following pairs are not consistent policy measures?
A. A tax increase and an increase in the money supply.
B. A tax reduction and an increase in the money supply.
C. A reduction in government expenditures and a decline in the money supply.
D. A tax increase and an increase in the interest rate.
A. A tax increase and an increase in the money supply.
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Communist countries worked under the premise that
a. people, when left on their own without government intervention, will find the best use of available resources b. central planners were in the best position to determine the allocation of scarce resources in the economy. c. households and firms, guided by an "invisible hand," could achieve the most efficient allocation of scarce resources. d. allowing the market forces of supply and demand to operate with no government intervention would achieve the most efficient allocation of scarce resources.
Use the above figure. The profit this monopolist earns is closest to
A. $3,000. B. $1,600. C. $1,000. D. $4,800.
A neighbor plants flowers in their front yard, which you can view and enjoy from your window. From your perspective, this is an example of
A. an externality. B. marginal analysis. C. property rights. D. an opportunity cost.
An increase in expected inflation is likely to cause
A) a decline in the demand for real balances. B) an increase in the demand for real balances. C) no change in the demand for real balances. D) no change in the demand for real balances only if the income elasticity of real money demand is zero.