According to Keynesians, an increase in the money supply will have its least impact on GDP and the greatest impact on the price level when the aggregate demand curve intersects
a. the horizontal portion of the aggregate supply curve
b. the vertical portion of the aggregate supply curve
c. the upward sloping portion of the aggregate supply curve
d. either the horizontal or upward sloping portion of the aggregate supply curve
e. either the horizontal or upward sloping portion of the aggregate supply curve
B
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Combating recession may require the government to
A. decrease aggregate supply. B. increase aggregate demand. C. decrease aggregate demand. D. decrease government spending.
The change in consumption that results from a change in the relative price of goods while staying on the same indifference curve is the
A) income effect. B) substitution effect. C) indifference effect. D) price effect.
If the price of inputs rises and personal income taxes rise:
a. Price index rises, and real GDP falls. b. Price index rises, and the change in real GDP is uncertain. c. The change in price index is uncertain, and real GDP falls. d. Price index falls, and real GDP rises. e. Price index falls, and real GDP falls.
In the above table, the level of autonomous consumption is
A. $0. B. $5,000. C. $1,000. D. $9,000.