An increase in the money supply leads to a(n):
a. decline in interest rates, an increase in investment, and an increase in aggregate demand.
b. decline in interest rates, a decrease in investment, and an increase in aggregate demand.
c. decline in interest rates, an increase in investment, and a decline in aggregate demand.
d. increase in interest rates, an increase in investment, and an increase in aggregate demand.
e. decline in interest rates, a decline in investment, and a decline in aggregate demand.
a
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Special interest group Z receives a 1/200th slice of the economic pie. Its net benefit from both an economic growth policy and a transfer policy is $60,000. How much does the size of the economic pie (Real GDP) need to grow before group Z is indifferent between the two policies?
A. $300 B. $120,000 C. $120,000,000 D. $12,000,000 E. none of the above
People combining the effects of past policy changes on important economic variables with their own judgment about the future effects of current and future policy changes is consistent with
A) frictional unemployment. B) the rational expectations hypothesis. C) active policy making. D) passive policy making.
There is a technological improvement in the production of good X. As a result, the _____________ curve for good X will shift ____________ resulting in a(n) _____________ in the equilibrium price of X and a(n) ____________ in the equilibrium quantity of X
A) supply; rightward; decrease; increase. B) demand; leftward; decrease; decrease C) demand; rightward; increase; increase D) supply; leftward; increase; decrease E) supply; leftward; increase; increase
The demand for farm goods is income inelastic if the percentage change in quantity demanded is __________ the percentage change in __________
A) greater than; income B) equal to; income C) less than; income D) greater than; revenue E) less than; revenue