If the government were to increase income taxes, we would predict:
A. a shift in aggregate demand to the right.
B. a downward movement along the aggregate demand curve.
C. a shift in aggregate demand to the left.
D. an upward movement along the aggregate demand.
Answer: C
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An example of how economic growth might not lead to economic development is:
A. the rate of literacy increased among all groups when a nation’s economy grew. B. people had greater social mobility due to the growth experienced in the nation. C. the average income in a nation increased with greater GDP growth. D. when a nation’s economy grew, the rate of malnutrition among children was relatively constant.
Despite both monetary and fiscal policy actions, real GDP declined at an annualized rate of 6% during the last quarter of 2008 and the first quarter of 2009
a. True b. False Indicate whether the statement is true or false
In the IS-LM model, a decrease in government purchases leads to a(n) ______ in planned expenditures, a(n) ______ in total income, a(n) ______ in money demand, and a(n) ______ in the equilibrium interest rate.
Fill in the blank(s) with the appropriate word(s).
If an economy produced 60 pounds of sushi at $12 per pound and 15 gallons of sake at $30 per gallon, the total value of these goods and services would be:
A. $450. B. $720. C. $1,170. D. $2,700.