The real balance effect is the change in
A) purchasing power that results from a change in income.
B) the amount of money one has that results from a change in income.
C) purchasing power that results from a change in the price level.
D) the amount of money one has that results from a change in the price level.
E) none of the above
C
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If the producers bear a larger portion of tax incidence than the buyers, which of the following must be true?
A. Their supply curve must be more elastic than the buyers demand curve. B. Their supply curve must be more inelastic than the buyers demand curve. C. They are not as business savvy as the buyers. D. They face a very inelastic demand.
A cyclical deficit is the portion of the deficit that exists when:
A. the economy is at potential income. B. inflation is fully anticipated. C. inflation is not fully anticipated. D. the economy is below potential income.
The congressional act passed in 1946 that contained the first official statement of goals for economic performance in the United States was the
A) Federal Reserve Act. B) Gramm-Rudman Act. C) Employment Act. D) Humphrey-Hawkins Act.
Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. All else equal, if the price of each input decreased from $30 to $20, productivity would:
A. increase from $50 to $60 and aggregate supply would decrease. B. increase from $60 to $70 and aggregate supply would increase. C. increase from $40 to $90 and aggregate supply would decrease. D. remain unchanged and aggregate supply would increase.