Which of the following will, unambiguously, decrease the price level?
A. an increase in government spending and a decrease in the Z factors
B. a decrease in government spending and an increase in the Z factors
C. a decrease in government spending and a decrease in the Z factors
D. an increase in government spending and an increase in the Z factors
Answer: B
You might also like to view...
Refer to Figure 28-2. Suppose the economy is at point B in the figure above. Which of the following is true?
A) The economy is producing at potential GDP. B) The expected rate of inflation is 3%. C) The natural rate of unemployment is 3.8%. D) The current unemployment rate is 5%. E) Expected inflation and actual inflation are the same.
What is stagflation, and how does it occur? How is stagflation represented in the aggregate demand-aggregate supply model?
What will be an ideal response?
Refer to the above figure. An unregulated natural monopolist would choose
A) output rate of Q1 and price P2. B) output rate Q1 and price P5. C) output rate Q3 and price P3. D) output rate Q4 and price P1.
The formula for calculating real GDP = (price index/nominal GDP) 100
a. True b. False Indicate whether the statement is true or false