If real disposable income fell during a particular year, we can conclude that:
a) personal taxes increased.
b) inflation occurred.
c) transfer payments declined.
d) none of these necessarily occurred.
d) none of these necessarily occurred.
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What would happen in the foreign exchange market if the European Central Bank raises European interest rates?
A) There will be a decline in the value of the euro. B) There will be a decline in the value of the dollar. C) There will be an increase in the value of the dollar. D) U.S. interest rates will decline.
During the years from 1964 to 1969, inflation increased in the United States
A) when the AD curve shifted up and to the right, even though the SRAS curve remained stable. B) when the SRAS curve shifted up and to the left, even though the AD curve remained stable. C) when the AD curve shifted up and to the right and the SRAS curve shifted up and to the left. D) despite the AD and SRAS curves remaining stable.
If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing it, the firm
A) added more to total costs than it added to total revenue. B) added more to total revenue than it added to total cost. C) is maximizing marginal profit. D) has minimized its losses.
If the MPC is 0.75, and the government cuts spending by $100b, the overall effect on GDP will be:
A. an increase of $400b. B. a decrease of $250b. C. a decrease of $400b. D. an increase of $250b.