If buyers of illegal goods are punished but sellers are not, then the price ________ and the equilibrium quantity ________
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
D
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If government expenditures are increased by $50 billion, assuming all other factors stay constant, we would expect the initial impact of the increased spending to cause real GDP to
A. increase by $50 billion. B. stay constant. C. increase by less than $50 billion. D. increase by more than $50 billion.
Since real GDP is adjusted for inflation and nominal GDP is not, nominal GDP must always be higher than real GDP. Do you agree or disagree? Why?
What will be an ideal response?
The New Deal succeeded in ending the Great Depression
Indicate whether the statement is true or false
Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The government's tax revenue is
A. $1,050. B. $900. C. $375. D. $675.