Barbara is a retailer of propane and propane accessories. As she designs her store layout for the new season, she recalls that a tax has just been removed from propane and propane products. If her store reflects the overall market, how should this knowledge influence her design?
a. She should make the propane area larger because more propane will be sold.
b. She should leave the propane area the same size because the same amount of propane will be sold.
c. She should make the propane area smaller because less propane will be sold.
d. She should close the propane area until a new tax is added to propane.
a. She should make the propane area larger because more propane will be sold.
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Suppose the economy is on the intermediate range of the aggregate supply curve. Which of the following would reduce both real GDP and the price level?
a. A decrease in aggregate supply. b. An increase in aggregate supply. c. A decrease in aggregate demand. d. An increase in aggregate demand.
If saving is less than domestic investment, then
a. there is a trade deficit and Y > C + I + G. b. there is a trade deficit and Y < C + I + G. c. there is a trade surplus and Y > C + I + G. d. there is a trade surplus and Y < C + I + G.
If labor productivity growth slows down in a country, this will
A) accelerate the increase in real GDP per capita. B) accelerate the increase in nominal GDP. C) slow down the increase in real GDP per capita. D) slow down the increase in nominal GDP.
How does an increase in near term spending needs affect the supply and demand curve for money?