When the government closes an expansionary gap with a change in government spending, the _____ in government spending leads to _____
a. decrease; a decrease in both real GDP and the price level
b. decrease; a decrease in real GDP and an increase in the price level
c. decrease; an increase in both real GDP and the price level
d. decrease; an increase in real GDP and a decrease in the price level
e. increase; a decrease in both real GDP and the price level
a
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Empirical studies indicate that the maximum amount of air pollution occurs ________ levels of real GDP per person.
A. at the lowest B. at "middle-income" C. equally at all D. at the highest
After a permanent increase in the money supply
A) the exchange rate overshoots in the short run. B) the exchange rate overshoots in the long run. C) the exchange rate smoothly depreciates in the short run. D) the exchange rate smoothly appreciates in the short run. E) the exchange rate remains the same.
The EU countries were prompted to seek closer coordination of monetary policies and greater exchange rate stability in order
A) to enhance Europe's role in the world monetary system. B) to turn the European Union into a truly unified market. C) both to enhance Europe's role in the world monetary system and to turn the European Union into a truly unified market. D) both to turn the European Union into a truly unified market and to counter the rise of Japan in international financial markets. E) to homogenize all European cultures.
A move from F to G represents
A. an increase in quantity supplied.
B. a decrease in quantity supplied.
C. an increase in supply.
D. a decrease in supply.