Which of the following would cause an increase in aggregate demand in the short run?
A. an increase in the supply of money
B. a decrease in the price level
C. an increase in taxes
D. a crop failure
Answer: A
You might also like to view...
Economists generally assume that the main goal of most businesses in the economy is to
A. provide jobs for the local population. B. avoid having to make very many decisions. C. maximize profits. D. be responsible corporate citizens.
A student is studying for an exam 2 hours a day and is debating whether to study an extra hour. The student's marginal benefit
A) depends on the grade the student earns on the exam. B) is the benefit the student receives from studying all 3 hours. C) is the benefit the student receives from studying the extra hour. D) is greater than the student's marginal cost.
Monetary policy is considered time-inconsistent because
A) of the lag times associated with the implementation of monetary policy and its effect on the economy. B) policymakers are tempted to pursue discretionary policy that is more contractionary in the short run. C) policymakers are tempted to pursue discretionary policy that is more expansionary in the short run. D) of the lag times associated with the recognition of a potential economic problem and the implementation of monetary policy.
What is the value of marginal profit at the profit-maximizing output?
What will be an ideal response?