A decrease in investment causes the price level to ________ in the short run and ________ in the long run
A) decrease; decrease further B) increase; decrease
C) increase; increase further D) decrease; increase
A
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Current income maintenance programs
A) often provide benefits to people who are working and earning substantially more than the poverty level. B) reduce the incentive of recipients to work. C) have safeguards to ensure that recipients work whenever physically able. D) fail to make the income distribution more equal.
In a monopoly, consumer surplus decreases and producer surplus increases.
a. true b. false
For a given price level, an upward shift of the expenditures schedule corresponds to an
A. inward shift of the aggregate demand curve. B. outward shift of the aggregate demand curve. C. outward shift of the aggregate supply curve. D. inward shift of the aggregate supply curve.
Developing countries employ the inflation tax because it provides a:
A. long-run solution to both their economic and political problems. B. short-run solution that helps keep the government afloat, even if only temporarily. C. a solution to their inflation problem. D. long-run solution to their budget problems even if it is politically unpopular.