In the aggregate demand-aggregate supply model in the short run, an increase in the money supply will lead to a(n) _____
Fill in the blank(s) with the appropriate word(s).
increase in both the price level and real GDP.
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The oversimplified formula for the multiplier is misleading because it ignores the effects of
a. price-level changes. b. the foreign sector. c. variable taxes. d. All of the above are correct.
An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:
A. decrease public saving. B. increase private saving. C. increase public saving. D. reduce investment in new capital equipment.
If new production technology is put into practice that allows workers to increase their productivity and process more chickens per hour, then the real wage of unskilled workers in poultry processing plants is predicted to ________ and the employment of unskilled workers in poultry processing plants is predicted to ________.
A. increase; decrease B. decrease; decrease C. increase; not change D. increase; increase
An increase in confidence will immediately shift
A. aggregate supply to the right. B. aggregate supply to the left. C. aggregate demand to the left. D. aggregate demand to the right.