A short run equilibrium:
a. Will be at a greater output level than the natural level of real output.
b. Will be at the natural level of real output
c. Will be at a smaller output level than the natural level of real output.
d. Short-run equilibrium could be at any of the above levels of output.
d
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If a change in the tax laws leads to a $100 billion decrease in tax revenue, then aggregate demand
A) increases by $100 billion. B) increases by less than $100 billion. C) increases by more than $100 billion. D) decreases by $100 billion. E) decreases by more than $100 billion.
For some investors, derivatives can be attractive financial assets to purchase because
A. these assets can be used to offset the possibility of another risk faced by the investor. B. these assets allow an investor to eliminate the risk that they face entirely. C. they provide high returns with a very small investment. D. they are easier to sell than common stock.
A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The price of each good is $10. Calculate the firm's short-run profit or loss
A) loss of $6,000 B) profit of $6,000 C) profit of $30,000 D) There is insufficient information to answer the question.
Other things equal, an excessive increase in the money supply will:
A. increase the purchasing power of each dollar. B. decrease the purchasing power of each dollar. C. have no impact on the purchasing power of the dollar. D. reduce the price level.