Decreasing government spending ________ the price level and ________ equilibrium real GDP
A) decreases; increases
B) increases; decreases
C) increases; increases
D) decreases; decreases
Answer: D
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Elasticity of demand equals the ratio of the percentage change in the price of a good to the percentage change in the quantity demanded
a. True b. False Indicate whether the statement is true or false
Many of the states that expanded Medicaid coverage to meet the criteria of the Affordable Care Act did not expect:
a. Congress to change the federal matching assistance percentage on new enrollees who were eligible under previous standards but had not enrolled. b. the large interstate migration of new enrollees from non-expansion states. c. the large increase in the number of new enrollees already eligible under previous standards. d. the increase in the number of physicians willing to accept new Medicaid patients.
Opportunities created by trade:
A) induce a greater degree of specialization. B) are evidenced by higher opportunity costs of production. C) are a result of absolute advantage. D) are few and far between.
If the dollar appreciates with respect to the euro, this means that
A. a European vacation for an American will be more expensive. B. it takes fewer dollars to buy the same amount of euros. C. it takes more dollars to buy the same amount of euros. D. it takes the same number of dollars to buy the same number of euros.