Everything else held constant, an increase in autonomous consumer spending will cause the IS curve to shift to the ________ and aggregate demand will ________
A) right; increase
B) right; decrease
C) left; increase
D) left; decrease
A
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When the supply curve is flat, a tariff on imported goods
a. always increases the welfare of Americans. b. always decreases the welfare of American.. c. has no effect on the welfare of Americans. d. only affects the welfare of Americans if the goods are also made domestically .
What is the real value of money?
A. its face value B. its compounded earnings in banks C. the quantity of goods it can buy D. the ability of shop at market prices
Under a fixed exchange rate regime, suppose there is a reduction in housing wealth that causes a reduction in consumption. This wealth-induced reduction in consumption will cause
A) a reduction in investment. B) an increase in net exports. C) a reduction in imports. D) all of the above E) none of the above
Monetary policy has medium-run effects on which of the following?
A) the level of output but not its composition B) both the level and composition of output C) only the price level D) the level of output AND the price level E) none of the above