In an expansion, federal tax revenues increase proportionally more than real GDP without the need for any government policy. This increase is an example of
A) the effect of deficit spending.
B) discretionary fiscal policy.
C) automatic fiscal policy.
D) automatic monetary policy.
E) discretionary monetary policy.
C
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Innovation is the process of turning an invention into a marketable product
a. True b. False
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand rises, and aggregate supply falls. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls, and aggregate supply rises. d. Aggregate demand and aggregate supply rise. e. Aggregate demand and aggregate supply fall.
In the open-economy macroeconomic model, if the supply of loanable funds shifts left
a. the interest rate rises and the supply of dollars in the market for foreign currency exchange shifts right. b. the interest rate rises and the supply of dollars in the market for foreign currency exchange shifts left. c. the interest rate falls and the demand for dollars in the market for foreign currency exchange shifts right. d. the interest rate falls and the demand for dollars in the market for foreign currency exchange shifts left.
For a monopoly, a negative marginal revenue implies:
A. that the demand is price elastic. B. the quantity effect is larger than the price effect. C. the price effect is larger than the quantity effect. D. total revenues are increasing.