A decrease in the price level will cause:
A. a movement rightward along the short-run aggregate supply curve.
B. the aggregate demand curve to shift to the right.
C. the long-run aggregate supply curve to shift to the right.
D. the short-run aggregate supply curve to shift to the right.
Answer: A
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A larger marginal propensity to import will make the slope of the aggregate expenditure function flatter
Indicate whether the statement is true or false
Suppose that real GDP is initially $14 trillion and the government attempts to increase real GDP to $15 trillion
The marginal propensity to consume is 0.8, and every $1.00 increase in real government spending crowds out $0.50 in real planned investment expenditures. Which increase in government spending below could yield the desired level of real GDP? A) $100 billion B) $125 billion C) $200 billion D) $400 billion
The Coinage Act of 1792
a. designated both gold and silver as the monetary standard for the U.S. b. designated gold as the monetary standard for the U.S. c. designated silver as the monetary standard for the U.S. d. designated paper Treasury notes as the monetary standard for the U.S.
Figure 17-9
Refer to . Before the tariff is imposed, this country
a.
imports 200 carnations.
b.
imports 400 carnations.
c.
exports 200 carnations.
d.
exports 400 carnations.