Tax increases
a. and increases in government expenditures shift aggregate demand right.
b. and increases in government expenditures shift aggregate demand left.
c. shift aggregate demand right while increases in government expenditures shift aggregate demand left.
d. shift aggregate demand left while increases in government expenditures shift aggregate demand right.
d
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Workers expect inflation to rise from 3% to 5% next year. As a result, this should
A) move the economy down along a stationary short-run aggregate supply curve. B) move the economy up along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the left. D) shift the short-run aggregate supply curve to the right.
Economies of scale are often confused with
A) market demand curves. B) long-run average fixed cost curves. C) short-run average total cost curves. D) learning curves.
Which of the following would cause an increase in the supply of peanut butter?
A) a decrease in the price of grape jelly (assuming that peanut butter and grape jelly are complements) B) an increase in the price of peanut butter C) an increase the price of a product that producers sell instead of peanut butter D) an increase in the number of firms that produce peanut butter
Suppose GDP for 2003 was $1500, wages and salaries were $800, rent payments were $200, consumption was $1000, and interest payments were $200.
a. $200 b. $500 c. $0 d. $100 e. $300