If the price level is fixed, then an increase in government spending will lead to
A) a larger increase in nominal GDP than in real GDP.
B) a smaller increase in nominal GDP than in real GDP.
C) no increase in either nominal GDP or real GDP.
D) an increase in nominal GDP by the same amount as an increase in real GDP.
D
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What is the one thing that all firms in an imperfectly competitive market have in common?
What will be an ideal response?
Which of the following is NOT considered to be an economic resource?
A) your economics professor B) the telephone company repair truck C) the local gas station D) a view of the stars on a clear night
An automobile insurance company that writes millions of policies is practicing a form of:
A. eliminating systematic risk. B. spreading risk. C. mutual fund. D. hedging risk.
Figure 33-8
?
In Figure 33-8, which of the following points illustrate the expansionary monetary policies of the mid-1990s and the accompanying favorable supply shocks?
A. A to B to C B. B to C to E C. C to B to A D. D to C to E