If personal taxes were decreased and resource productivity increased simultaneously, the equilibrium:
A. output would necessarily rise.
B. output would necessarily fall.
C. price level would necessarily fall.
D. price level would necessarily rise.
A. output would necessarily rise.
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What impact does a decrease in the price level in the United States have on net exports and why?
A) A decrease in the price level reduces net exports because lower prices increase American spending on imports. B) A decrease in the price level increases net exports because lower prices increase the value of the dollar. C) A decrease in the price level reduces net exports because lower prices raise the value of the dollar. D) A decrease in the price level increases net exports by reducing the relative cost of American goods.
Increased specialization in the computer industry is evidenced by
(a) the types of government policies implemented to aid the computer industry. (b) the growth of the software industry. (c) the growth of the manufacturing industry. (d) the growth of agriculture.
In a simplified banking system, the money multiplier falls as the required reserve ratio rises
a. True b. False Indicate whether the statement is true or false
Refer to the above figure. Autonomous consumption is
A. only at point A. B. to the left of point B. C. only at point B. D. to the right of point B.