If aggregate demand and aggregate supply both shift right, we can be sure that the price level is higher in the short run
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose the government spending multiplier is 2. The federal government cuts spending by $40 billion. What is the change in GDP if the price level is not held constant?
A) a decrease of less than $80 billion B) an increase equal to $80 billion C) an increase of greater than $80 billion D) an increase of less than $80 billion E) a decrease of more than $80 billion
In the negative income tax plan, a guarantee of $5,000 and a tax rate of 50 percent imply a break-even income of which of the following figures?
A. $1,000 B. $2,500 C. $10,000 D. $12,500
If Real GDP is $8,000, the money supply is $4,000, and the price level is 3, then velocity is
A) 2.00. B) 3.33. C) 6.00. D) 7.50. E) none of the above
Which of the following acts prohibits two competitors from merging with one another for the purpose of reducing competition?
A) the Sherman Act B) the Clayton Act C) the Federal Trade Commission Act D) the Robinson-Patman Act