Adverse aggregate supply shocks would result in:
A. A lower rate of inflation and a higher rate of unemployment
B. A higher rate of inflation and a lower rate of unemployment
C. A lower rate of inflation and a lower rate of unemployment
D. A higher rate of inflation and a higher rate of unemployment
D. A higher rate of inflation and a higher rate of unemployment
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Answer the following statements true (T) or false (F)
1. In the multiplier formula, 1/MPS equals the multiplier. 2. If the MPC is five-sixths, the size of the multiplier is 6. 3. If planned investment decreases, the multiplier will decrease the equilibrium income. 4. Various estimates of the multiplier for the U.S. economy place it between 2 and 3, depending on the level of employment. 5. The classical doctrine assumed that the normal equilibrium position for the economy was at full employment.
Regression coefficients are indicators of the impact of independent variables on dependent variables.
A. True B. False C. Uncertain
Gross domestic product is a dollar measure of
A. total gross investment in an economy. B. total industrial sales in a particular time period. C. the total physical product of the economy. D. the value of all final goods and services produced in one time period.
The real balance effect (wealth effect), the interest rate effect, and the net exports effect all help to explain the:
A. decrease in supply in the loanable funds market. B. large federal budget deficit. C. increase in short-run aggregate supply. D. downward-sloping aggregate demand curve.