An increase in government purchases of $200 billion will shift the aggregate demand curve to the right by
A) $200 billion.
B) less than $200 billion.
C) more than $200 billion.
D) None of the above are correct. This policy shifts the long-run aggregate supply curve.
Answer: C
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According to the article, we can conclude that the standard of living
A) is higher in Brazil because its citizens feel more control over their lives and have experienced job and wage growth. B) is higher in Japan because their life expectancy is longer. C) is higher in Japan because its GDP is higher. D) might be higher in Japan because it has a higher per capita real GDP but other factors such as Brazilians' satisfaction with their lives and economic growth should be considered when determining economic well-being.
The type of tax receipts that has shown the slowest growth since World War II has been
A) personal taxes. B) contributions for social insurance. C) taxes on production and imports. D) corporate taxes.
Under a system of fixed exchange rates, what happens if a country's currency is overvalued?
A) The central bank loses official reserve assets. B) The central bank gains official reserve assets. C) The currency appreciates. D) The exchange rate rises.
A ______ percent increase in the price of a good results in a ______ percent increase in the quantity supplied. In this case, the price elasticity of supply is +2.
a. 12; 24 b. 12; 36 c. 10; 22 d. 10; 12