In the classical IS—LM/AD—AS model, a beneficial productivity shock would ________ output, ________ the real interest rate, and ________ the price level
A) increase; decrease; increase
B) increase; decrease; decrease
C) increase; increase; decrease
D) decrease; decrease; increase
B
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Based on Figure 6.1, given a tariff of $0.25 per bushel on soybean imports, how much will domestic production increase?
A) Domestic firms will increase output by 10 million bushels. B) Domestic firms will increase output by 20 million bushels. C) Domestic firms will increase output by 70 million bushels. D) Domestic firms' production will not be changed by the tariff.
Congress created the Federal Reserve System in 1913 as the institution delegated to administer
A) monetary policy to stabilize the economy. B) the constitutional power of Congress to "coin money and regulate the value thereof." C) collect taxes for the federal government. D) the minting of coins.
Which of the following is true of an annually balanced federal budget? a. Most economists agree that the federal government should balance its budget just as each household does. b. Such a policy would require the government to increase its spending when tax receipts decrease
c. Such a policy became popular between the 1930s and 1960s. d. Such a policy guarantees that the economy is its potential level. e. Such a policy could worsen a contractionary gap.
Movement along the aggregate supply curve is referred to as a change in aggregate quantity supplied
a. True b. False Indicate whether the statement is true or false