The slope of the aggregate demand curve indicates that ________ in the inflation rate leads to ________ of real GDP demanded by households and firms
A) an increase; a higher level
B) a decrease; a lower level
C) a decrease; a higher level
D) an increase; no change in the level
C
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The largest source of tax revenues for states is
A. general sales. B. motor fuel. C. alcoholic beverages. D. tobacco.
Point out the main differences in job conditions and worker characteristics between the urban formal and informal sectors
What will be an ideal response?
A plot of the interest rates on default-free government bonds with different terms to maturity is called
A) a risk-structure curve. B) a default-free curve. C) a yield curve. D) an interest-rate curve.
Assume the marginal propensity to consume (MPC) is 0.75 and the government cuts taxes by $250 billion. The aggregate demand curve will shift to the:
a. right by $1,000 billion. b. right by $750 billion. c. left by $1,000 billion. d. left by $750 billion.