The Ricardo-Barro effect refers to how ________ in response to a government budget ________
A) investment demand changes; deficit
B) investment demand and saving supply change; surplus
C) investment demand changes; surplus
D) saving supply changes; deficit
E) government budget changes; surplus or deficit
D
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Suppose the economy currently has an inflationary gap. The Fed engages in contractionary monetary policy. The impact of contractionary monetary policy will be to
A) increase short-run aggregate supply, decrease in prices and decrease in real GDP. B) increase short-run aggregate supply, decrease prices and increase real GDP. C) decrease aggregate demand, decrease prices, and increase real GDP. D) decrease aggregate demand, decrease prices, and decrease real GDP.
Almost 85% of American firms have less than
a. 20 employees. b. 100 employees. c. 500 employees. d. 1,000 employees.
A decrease (leftward shift) in the supply for a good will tend to cause
a. an increase in the equilibrium price and quantity b. a decrease in the equilibrium price and quantity c. an increase in the equilibrium price and a decrease in the equilibrium quantity d. a decrease in the equilibrium price and an increase in the equilibrium quantity e. none of the above.
Refer to the information provided in Figure 34.4 below to answer the question(s) that follow.
Figure 34.4Refer to Figure 34.4. The demand and supply of pounds are D1 and S1. If the demand shifts to D2 and supply remains unchanged at S1
A. the dollar appreciates and the equilibrium quantity of pounds increases. B. the dollar depreciates and the equilibrium quantity of pounds decreases. C. the dollar depreciates and the equilibrium quantity of pounds increases. D. the dollar appreciates and the equilibrium quantity of pounds decreases.