Which of the following would cause prices to rise and real GDP to fall in the short run?

a. an increase in the expected price level.
b. an increase in the capital stock.
c. an increase in the money supply.
d. an increase in taxes.


a

Economics

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A firm must spend $10 million today on a project that is expected to bring in annual revenues of $1.5 million for the next 10 years (beginning at the end of year 1)

a. If the firm's cost of capital is 5%, what is the NPV of this project? b. If the firm's cost of capital is 10%, what is the NPV of this project? c. What is the internal rate of return?

Economics

In Japan, the market value of the land is approximately four times that of all the land in the United States, even though Japan is only about the size of California. The most likely explanation for this fact is

A. greater demand for land in Japan relative to the supply than in the United States. B. land is very productive in Japan. C. land is not fixed in supply in the United States. D. Japanese workers are very productive.

Economics

Which of the following workers is most likely to be asked to post a bond?

A) construction contractor B) fast food worker C) sanitation worker D) book author

Economics

The aggregate demand curve

A. slopes upward. B. slopes downward. C. is horizontal. D. is vertical.

Economics