When aggregate demand exceeds current production
a. both output and the price level are in equilibrium.
b. output is not in equilibrium, but the price level is.
c. prices are not in equilibrium, but output is.
d. neither output nor the price level is in equilibrium.
d
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Which of the following is correct?
i. A surplus puts downward pressure on the price of a good. ii. A shortage puts upward pressure on the price of a good. iii. There is no surplus or shortage at equilibrium. A) i and ii B) only iii C) ii and iii D) i and iii E) i, ii, and iii
The aggregate demand curve:
a. shows the level of real GDP purchased in the economy at different possible price levels during a period of time. b. shows the level of real GDP produced in the economy at different possible price levels during a period of time. c. shifts to the left whenever there is an increase in aggregate expenditures. d. slopes upward.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same. b. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency rises. c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises.
One major tax loophole intended to help state & local governments raise funds is
A. fiscal federalism. B. tax exempt municipal bond interest. C. tax deductible mortgage interest. D. tax credits for solar panels.