Which of the following will be a short run impact of a pre-election expansionary fiscal policy, public expectations remaining constant?
a. An increase in unemployment
b. A decline in real GDP
c. An increase in real GDP
d. A fall in the rate of inflation
e. An economic recession
c
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Refer to the Article Summary. If, after the outflow of educated workers in Mexico, it now takes more capital per hour worked to get the same amount of GDP per hour worked, this indicates ________ the per-worker production function in Mexico
A) a movement up B) a movement down C) a downward shift of D) an upward shift of
The Keynesian-cross model implies that changes in aggregate supply cause fluctuations in real GDP
a. True b. False Indicate whether the statement is true or false
The value of commodity money: a. fluctuates because its value is compared with the price of the commodity in international markets. b. fluctuates because its base commodity market value is flexible
c. remains stable because a particular commodity always yields the same level of utility. d. remains constant because the production of the commodity used as money is restricted to limited hands.
You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues from that product, you should:
A. Increase the price of the software B. Decrease the price of the software C. Hold the price of the software constant D. Increase the supply of the software