Who are the decision makers in the most basic macroeconomic model?
What will be an ideal response?
Households and Firms
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If aggregate demand shifts inward over a long period of time, with aggregate supply held constant, the economy should experience
A. unemployment. B. budget surpluses. C. stagflation. D. inflation.
Comparing total taxes as a percentage of GDP in the United States to Western European countries, such as the France, Norway, and Sweden,
A. U.S. taxation is smaller. B. U.S. taxation is about the same. C. U.S. taxation is slightly larger. D. U.S. taxation is substantially larger.
The economies of most less-developed countries (LDCs) are based on:
A. agriculture. B. manufacturing. C. services. D. oil.
If an increase in the growth rate of the money supply results in an equal increase in the rate of inflation with no effect on any real variables, we say that
A) the classical dichotomy fails. B) money is neutral. C) money is superneutral. D) money is the most preferred store of value.