Exhibit 14-8 Aggregate demand and supply
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In Exhibit 14-8, if aggregate demand shifts from AD1 to AD3,
A. real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140.
B. real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140.
C. real GDP will increase from $3.0 to $4.0, and the price level does not change.
D. real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120.
Answer: D
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Which of the following represents the correct formula for present value?
A) Present value = Payment T periods from now × (1 + interest rate)T B) Present value = Payment T periods from now - (1 + interest rate)T C) Present value = Payment T periods from now + (1 + interest rate)T D) Present value = Payment T periods from now / (1 + interest rate)T
The largest component of the money supply (M1 ) is
A) time deposits. B) large CDs. C) demand deposits. D) coin and currency.
What is/are the central argument(s) against tariffs?
(a) They redistribute income away from consumers who are paying higher prices because of the tariffs. These rents are given to the individual industries that are protected by the tariffs and are operating inefficiently. (b) A laissez-faire economy is the American way. (c) They protect the wealthy. (d) They benefit only fast-growing industries.
Which of the following is included in the calculation of GDP?
a. The purchase of tutoring services from a tutor who holds citizenship outside the country but resides within the country. b. The purchase of a new edition of a foreign textbook that was produced in a different nation. c. The purchase of ink and paper supplies by a textbook company for the production of new textbooks. d. The purchase of a used textbook from a friend who took the same class last year.