Which of the following is an example of fiscal policy?
a. a change in taxes that affects investment spending
b. a change in government spending on goods and services
c. a change in taxes that affects consumer spending
d. all of the above
Answer: b. a change in government spending on goods and services
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The figure above shows the loanable funds market. The equilibrium real interest rate is ________ percent, and the equilibrium quantity of loanable funds is ________
A) 4; $1.4 trillion B) 6; $1.6 trillion C) 4; $1.8 trillion D) 8; $1.8 trillion E) 8; $1.4 trillion
Aggregate producer surplus in an industry is measured along the market supply curve is and only if firm production technologies exhibit the quasilinearity property.
Answer the following statement true (T) or false (F)
If the demand for a good increases at the same time the supply of the good decreases, what happens to equilibrium price and quantity?
A. Equilibrium quantity increases, but the effect on equilibrium price is ambiguous. B. Equilibrium quantity decreases, but the effect on equilibrium price is ambiguous. C. Equilibrium price increases, but the effect on equilibrium quantity is ambiguous. D. Equilibrium price decreases, but the effect on equilibrium quantity is ambiguous.
Which of the following is NOT a reason for rising health care expenditures in the United States over the last 40 years?
A. technological change B. discovery of new diseases C. third-party financing of health care expenditures D. aging of the population