If the economy is on the steep portion of the AS curve and taxes decrease, ________ crowds out ________.
A. government spending; planned investment
B. planned investment; consumption
C. planned investment; government spending
D. consumption; planned investment
Answer: D
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What is measured on the vertical axis of the aggregate demand graph?
A) unemployment B) nominal income C) the price level D) real GDP per year
Which of the following is true? a. Economists assume that there are no private property rights in a free market
b. A free market is also known as a fettered market. c. A voluntary transaction means that all parties to the transaction must expect to benefit. d. People always receive goods and services at a discounted price in a free market. e. An economic growth is represented by an inward shift of the production possibility curve.
Medicare subsidizes or provides health care to the poor and medicaid provides health care to the elderly
a. True b. False Indicate whether the statement is true or false
The demand curve for money
a. shows the amount of money balances that individuals and businesses wish to hold at various interest rates. b. reflects the open market operations policy of the Federal Reserve. c. shows the amount of money that individuals and businesses wish to hold at various price levels. d. reflects the discount rate policy of the Federal Reserve.