If the U.S. government increases its expenditures (without any changes in taxes) while the Federal Reserve Bank decreases the money supply:
A. the AD curve would likely shift to the right.
B. the AD curve would likely remain unchanged.
C. the AD curve would likely shift to the left.
D. what happens to the AD curve is unclear.
Answer: D
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Between 2015 and 2016, if an economy's exports rise by $8 billion and its imports fall by $8 billion, by how much will GDP change between the two years, all else equal?
A) The increase in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP. B) Net exports will decrease GDP by $8 billion. C) Net exports will increase GDP by $8 billion. D) Net exports will increase GDP by $16 billion.
What is meant by the term "government-imposed barrier to entry"? Why would a government be willing to impose barriers to entering an industry?
What will be an ideal response?
An increase in the money ________ shifts the LM curve to the ________, causing the interest rate to fall and output to rise, everything else held constant
A) demand; right B) demand; left C) supply; right D) supply; left
Given the indifference curve and budget line below, this individual:
A. Prefers B to A, but B costs more
B. Prefers B to A, and they cost the same
C. Is indifferent between A and B, but A costs less
D. Is indifferent between A and B, and they cost the same