When the short-run aggregate supply curve is steep, then for a given increase in aggregate demand:
a. the increase in real GDP will be relatively small and the increase in the price level will be relatively large.
b. the increase in real GDP will be relatively large and the increase in the price level will be relatively small.
c. the increase in both real GDP and the price level will be large
d. the increase in both real GDP and the price level will be small.
e. the decrease in real GDP will be larger than the decrease in the price level.
a
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Tax expenditures are revenues that
A. are always recouped during tax season. B. only apply to large corporations. C. are needed to get full exemptions. D. are forgone due to preferential tax treatment.
US trade deficit arises from trade in manufactured goods with countries where US has ___ trade agreement in place
A. unregulated B. unratified C. few D. no
An increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short run
Indicate whether the statement is true or false
A bank has total assets of $2,000,000 and capital of $150,000. The bank's leverage ratio is
A) 20%. B) 15%. C) 7.5%. D) None of the above.