All of the following would cause the aggregate demand curve to shift EXCEPT
A. a decrease in the price level.
B. improvements in economic conditions in other countries.
C. an increase in taxes.
D. a rise in real interest rates.
Answer: A
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If the CPI is currently 202, what does this tell you about inflation between last year and this year?
A) Inflation in the economy between this year and last year was 2%. B) There was deflation in the economy between this year and last year. C) The CPI measures only the level of prices in a given year, not the percentage change in prices from one year to the next. D) Inflation in the economy between this year and last year was 102%.
Fine-tuning involves the adoption of fixed policy rules regardless of the economic situation.
Answer the following statement true (T) or false (F)
China's economy did not decline at all during its transition from communism to capitalism
Indicate whether the statement is true or false
As the MPS increases, the multiplier will
A. decrease. B. remain constant. C. increase. D. either increase or decrease depending on the size of the change in investment.