When taxes are cut, aggregate demand ________ and aggregate supply ________
A) decreases; increases
B) increases; increases
C) increases; does not change
D) increases; decreases
E) decreases; decreases
B
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Kevin purchasing concert tickets with his debit card is an example of the ________ function of money
A) medium of exchange B) unit of account C) store of value D) specialization
The U.S. used high-pressure steam engines, whereas the British favored low-pressure engines. The reason for the American preference for high-pressure steam engines was that
(a) low-pressure steam engines, though more efficient, were complicated to build and operate and America lacked skilled labor compared to England. (b) the high-pressure steam engines used extravagant amounts of wood fuel. The U.S. abundance of wood compared to Europe made building high-pressure steam engines cheaper in the U.S. (c) Americans simply lagged behind technologically compared to England and continued to use the outdated high-pressure steam engines. (d) England had patents on the superior low-pressure steam engine and would not allow other nations to use the technology.
When inflation rises, people tend to go to the bank
a. more often, giving rise to menu costs. b. more often, giving rise to shoeleather costs. c. less often, giving rise to redistribution costs. d. less often, thereby lessening the severity of the inflation tax.
Discuss several of the hypotheses concerning the reduction in productivity growth in the mid-1970s
What will be an ideal response?