The government expenditure multiplier reflects the magnification on ________ from a change in government expenditure on goods and services
A) tax receipts
B) aggregate demand
C) aggregate supply
D) the budget deficit
E) potential GDP
B
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AC is lower in the long run than in the short run because
A. prices often fall, allowing savings on purchases. B. inputs can be combined more efficiently in the long run. C. over time the prices of all inputs tend to decrease. D. AFC falls with output over all ranges of output.
A financial innovation that developed as a result of banks avoidance of bank branching restrictions was
A) money market mutual funds. B) commercial paper. C) junk bonds. D) bank holding companies.
When TR is increasing as a monopolist's output increases
A) MR is negative. B) MR is positive. C) MR = 0. D) MR may be positive or negative.
According to the quantity theory of money, if the quantity of goods and services doubles within the economy while velocity is constant and the money supply is cut in half, then the price level will be
a. unaffected b. four times higher c. times higher d. one-half its previous level e. one-fourth its previous level