In the basic Keynesian model, a decrease in transfer payments:
A. increases potential output.
B. reduces potential output.
C. reduces short-run equilibrium output.
D. increases short-run equilibrium output.
Answer: C
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In Figure 17-3 above, SAS0 must shift to SAS1 when
A) the actual price level rises. B) the expected price level rises. C) AD0 shifts to AD1. D) the nominal money supply rises.
From an economics standpoint, the Articles of Confederation did not provide for
(a) levying taxes to support a central government. (b) regulating interstate commerce. (c) enforcing laws, because no federal judiciary was authorized. (d) any of the provisions mentioned above.
The general trend in health care policy during the twentieth century has been _____
a. towards preventing the spread of communicable diseases b. towards ensuring that pharmaceuticals and physicians are well-regulated c. focused on general health care expenditures d. focused on general public health issues
The opportunity cost of capital is an implicit cost almost every business incurs
a. True b. False Indicate whether the statement is true or false