The quantity of real GDP supplied decreases if the price level ________ because it ________ profits
A) falls; decreases
B) rises; increases
C) rises; decreases
D) falls; increases
E) None of the above answers is correct because the AS curve is vertical so that the quantity of real GDP supplied does not change when the price level changes.
A
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
What is rent seeking with respect to restricting international trade?
A) The rent on factory buildings increases if trade is restricted. B) The government avoids paying rent on buildings when importers pay the tariff. C) An attempt to capture the gains from trade by imposing a tariff D) The government's efforts to capture tariff rents E) The attempt by importers to avoid paying a tariff
Alexander Hamilton argued for a "National Bank" that would
a. provide the increased money supply necessary to accommodate increased business activity. b. lend money to the U.S. Treasury. c. serve as fiscal agent for the U.S. government. d. serve as a tax collection agency for the U.S. government. e. All of the above.
An decrease in taxes combined with a decrease in government purchases would: a. increase AD
b. decrease AD. c. leave AD unchanged. d. have an indeterminate effect on AD.