Since classical economists and monetarists believe that the economy operates at full employment along the vertical segment of aggregate supply,:
A. any increase in the money supply can only end up raising the price level.
B. any increase in the money supply can only end up lowering the price level.
C. any decrease in the money supply can only end up raising the price level.
D. changes in the money supply will not affect the price level.
Answer: A
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If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP by $200 million, then by how much would they have to change taxes?
a. -$240 million b. -$200 million c. -$180 million d. -$50 million
A pure private good is
A. nonrival in consumption and subject to exclusion. B. rival in consumption and subject to exclusion. C. rival in consumption and not subject to exclusion. D. all of these answer options are correct.
Which of the following products has the most elastic demand?
A. Ben and Jerry's Chunky Monkey ice cream in the pint container B. all Ben and Jerry's ice cream C. all premium ice cream D. all ice cream
In 2014, income from the assets that workers have saved over their working lives constituted on average ________ of income for U.S. adults aged 65 and over.
A. 10 percent B. 18 percent C. 3 percent D. 29 percent