"Leaning against the wind" is exemplified by a
a. tax cut when there is a recession.
b. decrease in the money supply when there is a recession.
c. decrease in government expenditures when there is a recession.
d. All of the above are correct.
a
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To be successful in stabilizing AD, the application of a constant growth-rate rule for the money supply requires
A) a constant velocity of money. B) a steady and predictable rate of growth of the velocity of money. C) a steady and predictable rate of growth of the velocity of income. D) Both B and C are correct.
Which of the following most accurately describes the aggregate supply curve?
a. It shows the price level associated with firms' unit costs and markups for any level of GDP. b. It is the sum of all individual firms' supply curves. c. It is determined by the federal government. d. It shows firms' unit costs for each level of GDP. e. It shows the equilibrium level of GDP corresponding to each price level.
A ____ is a graph whose axes show the quantities of two inputs that are used to produce some output
a. production indifference map b. two-variable diagram c. scalar diagram d. time-series graph
In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $800 per month in tax revenue. We can conclude that the equilibrium
quantity of widgets has fallen by a. 40 per month. b. 50 per month. c. 75 per month. d. 100 per month.