An increase in the money supply will:
a. decrease both investment spending and aggregate demand.
b. decrease investment spending and increase aggregate demand.
c. decrease both consumption spending and aggregate demand.
d. increase both investment spending and aggregate demand.
e. increase investment spending and decrease aggregate demand
d
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If the economy experiences a negative supply shock, which of the following will be true?
A) Inflation will fall, and real GDP will fall. B) Inflation will rise, and real GDP will rise. C) Inflation will fall, and real GDP will rise. D) Inflation will rise, and real GDP will fall.
If everyone pays a fixed dollar amount of tax, then the tax is a:
A. Proportional tax B. Regressive tax C. Personal tax D. Marginal tax
At an output of 20,000 units per year, a firm's variable costs are $80,000 and its average fixed costs are $3. The total costs per year for the firm are:
A. $80,000 B. $100,000 C. $140,000 D. $240,000
Which of the following produces a movement along the aggregate demand curve and does not shift the aggregate demand curve?
A) a change in government expenditures on goods and services B) a change in monetary policy C) a change in the price level D) a change in foreign incomes E) a change in expectations about the future