If aggregate demand increases, thereby leading to an increase in real GDP and inflation, there is
A) a leftward shift in the short-run Phillips curve.
B) a movement downward along the short-run Phillips curve.
C) a movement upward along the short-run Phillips curve.
D) a rightward shift in the short-run Phillips curve.
E) neither a movement along nor a shift in the short-run Phillips curve.
C
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Countries with more independent central banks tend to have
A) higher inflation rates. B) lower inflation rates. C) lower rates of unemployment. D) higher rates of GDP growth.
If the price of monthly satellite TV service increases from $40 to $50, the percentage change is
A) 5 percent. B) 20 percent. C) 25 percent. D) 45 percent.
Assume that we want to drive our economy out of recession by generating a $400 billion change in real GDP. The MPC is 0.80 . Which of the following policy prescriptions would generate the targeted $400 billion change in income?
a. $120 billion increase in government spending and $50 billion increase in tax revenue. b. $140 billion increase in government spending and $70 billion increase in tax revenue. c. $160 billion increase in government spending and $120 billion increase in tax revenue. d. $220 billion increase in government spending and $100 billion increase in tax revenue. e. $400 billion increase in government spending and $300 billion increase in tax revenue.
Which of the following is an action taken by many lobbyists?
a. Contributing to the campaigns of legislators b. Writing and editing federal legislation c. Identifying pork-barrel spending issues d. Petitioning for a change in voting cycles