If aggregate planned expenditures equal real GDP, then
A) unplanned inventory changes equal zero.
B) inventories decrease below their planned levels and businesses increase their production.
C) inventories decrease below their planned levels and businesses decrease their production.
D) inventories increase above their planned levels and businesses decrease their production.
E) there is no equilibrium level of real GDP.
A
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Ceteris paribus, a decrease in the number of firms selling calculators will result in
A. A decrease in the supply of calculators. B. A decrease in the demand for calculators. C. An increase in the supply of calculators. D. An increase in the demand for calculators.
According to the equation of exchange, if real GDP is $2 trillion and the money supply is $0.5 trillion, the velocity of money: a. must be 4
b. must be 1/4. c. must be 4 trillion. d. must be 1/4 trillion. e. cannot be determined unless we know the price level.
Answer the following statement true (T) or false (F)
1) "Tax Freedom Day" in the United States typically occurs in mid-July. 2) Government assumes some responsibility for providing a minimum standard of living for all citizens to compensate for the increase in income inequality caused by government tax revenues and expenditures. 3) The largest source of local government's revenue is the sales tax. 4) The basic source of state government's revenue is the property tax.
Which of the following statements is correct?
A) Demand pull inflation is caused by an increase in demand and an increase in supply. B) Cost push inflation is the result of rising input costs pushing the aggregate demand curve to the left. C) Demand pull inflation is caused by an increase in demand and an increase in the quantity supplied. D) None of the above.