Other things constant, the quantity theory of money concludes that any increase in the quantity of money
What will be an ideal response?
) proportionally increases the nominal GDP
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The effect of a tax multiplier on aggregate demand is larger than that of the government spending multiplier
a. True b. False Indicate whether the statement is true or false
Macroeconomic equilibrium occurs when the quantity of output _____ equals the quantity of output _____.
Fill in the blank(s) with the appropriate word(s).
Cash may be preferred to food stamps because additional cash
A) rotates the budget constraint. B) shifts out the budget constraint at every point. C) provides a smaller opportunity set. D) allows the purchase of more food.
Which of the following is not true with regard to the burden of the U.S. national debt?
a. The debt does burden future generations to the extent that it is sold to foreigners. b. Budget deficits are not appropriate for stabilization purposes under any circumstances. c. The debt will reduce the nation's capital stock if incurred during a fully employed economy. d. The large deficits of the 1980s and early 2000 were particularly worrisome because they were not attributable to recessions.