An increase in total planned real expenditures that is caused by a factor other than the price level will lead to the
A. aggregate supply curve shifting to the right.
B. aggregate supply curve shifting to the left.
C. aggregate demand curve shifting to the left.
D. aggregate demand curve shifting to the right.
Answer: D
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If a household experiences a $880 increase in consumption with a $1,100 increase in disposable income, what is the slope of that household's saving function?
a. 0.20 b. 2.0 c. 0.80 d. 0.08 e. 0.25
State and local governments
a. are funded entirely by their own tax base. b. receive the majority of their tax revenues from corporate income taxes. c. are generally not responsible for collecting sales taxes. d. receive some of their funds from the federal government.
The Single European Act passed in 1987 sought to:
A) bring former communist nations into the EC. B) further integrate the European economies to promote trade and economic growth. C) establish the European nations as sovereign nations with no political ties to the center. D) impose stiff penalties for violating the exchange rate parities set in the ERM.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower