When the central bank ________ the money supply, the LM curve shifts to the right, interest rates ________, and equilibrium aggregate output ________, everything else held constant
A) increases; fall; increases
B) increases; rise; decreases
C) decreases; rise; decreases
D) decreases; fall; increases
A
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What is the difference between real and nominal GDP, and why do economists make this distinction?
What will be an ideal response?
A positive demand shock causes a ________ the IS curve and a ________ the aggregate demand curve
A) movement up along; shift to the right of B) shift to the right of; movement down along C) movement down along; movement down along D) shift to the right; shift to the right of
Countries that start with very little physical capital will get a:
A. higher return from adding a unit of capital than a country that starts at a higher initial level will. B. lower return from adding a unit of capital than a country that starts at a higher initial level will. C. similar return from adding a unit of capital than a country that starts at a higher initial level will. D. higher return from adding a unit of capital the more natural resources they possess.
The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000 . Emily paid $9,000 in taxes. What were her marginal and average tax rates?
a. 20 percent and 13.8 percent, respectively b. 20 percent and 15 percent, respectively c. 10 percent and 13.8 percent respectively d. 10 percent and 15 percent respectively