Suppose an increase in investment spending results in an increase in equilibrium real GDP and a rise in the equilibrium price level. This implies that the aggregate supply curve for this economy is vertical
a. True
b. False
Indicate whether the statement is true or false
False
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Money market mutual funds are included in
A) M1. B) M2. C) both M1 and M2. D) neither M1 nor M2.
Who benefits from an import quota on a good?
A) domestic consumers of the good B) foreign governments C) domestic producers of the good D) foreign producers of the good
In a two-period model, holding everything else constant, an increase in current taxes
A) unambiguously increases the current account surplus. B) unambiguously decreases the current account surplus. C) has an uncertain effect on the current account surplus. D) has no effect on the current account surplus, as long as Ricardian equivalence holds.
A demand schedule's position is determined partly by the supply of a good
a. True b. False Indicate whether the statement is true or false