Suppose the nation is in a recession. As a result, the current macroeconomic equilibrium occurs along the flat portion of the aggregate supply curve. A moderate increase in aggregate demand is likely to
A. increase the equilibrium price level with little effect on equilibrium real GDP.
B. increase equilibrium real GDP with little effect on the price level.
C. cause the price level to fall.
D. decrease employment.
B. increase equilibrium real GDP with little effect on the price level.
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Which of the following does NOT describe a function of money?
A) unit of account B) barter C) medium of exchange D) store of value
Gross private domestic investment is a component of which approach to measuring GDP?
A) incomes approach B) expenditure approach C) linking approach D) output approach
Which of the following is an example of intraindustry trade?
A) Trading peanut oil for tractors B) Trading crude oil for automobiles C) Trading Nokia smartphones for Apple iPhones D) Trading jeans for cotton
If an excise tax is imposed on steak,
a. the government's tax revenue will decrease b. the government's tax revenue will increase c. the amount of steak produced and sold will increase d. the market price of steak will decrease e. the market price will rise but the market quantity will be unaffected