Which of the following actions would cause the aggregate demand curve to shift to the left?
A) an increase in consumer spending caused by a cut in the personal income tax rate
B) an increase in government spending caused by increased spending on highways and bridge construction
C) a decrease net export spending caused by an appreciation of the home currency
D) an increase in exports caused by an increase in economic activity in the European Union
C
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Suppose the Okun's law coefficient is 2, the full-employment level of output is $5000 billion, and the natural rate of unemployment is 6%
(a) What is the current level of output if the current unemployment rate is 8%? (b) Suppose the unemployment rate falls to 5%; what is the current level of output? (c) Suppose structural changes in the economy raise the natural rate of unemployment to 7%, and lower the full-employment level of output to $4800 billion. If the current unemployment rate is 8%, what is the current level of output?
To be efficient, outputs should be produced that minimize total cost
a. True b. False Indicate whether the statement is true or false
Suppose the Congress and president decreased the maximum annual contributions limits to retirement accounts and at the same time reduced the budget deficit. What would happen to the interest rate?
a. It would decrease. b. It would increase. c. It would stay the same. d. It might do any of the above.
For saving to increase, consumption must decrease, ceteris paribus
Indicate whether the statement is true or false