Which of the following events will most likely cause an increase in both the price level and real gross domestic product?
(a) The prime rate increases
(b) Exports increase
(c) Income taxes increase
(d) Crude oil prices decrease
(e) Inflationary expectations decrease
Ans: (b) Exports increase
You might also like to view...
Comparative advantage is based on opportunity costs
a. True b. False
According to the Taylor rule,
a. the Fed would have the discretion to choose an appropriate inflation rate b. the Fed would announce targets for the inflation rate and real GDP c. the Fed would allow the inflation rate to increase by about 0.5 percent per year d. the Fed would allow the price level to increase by about 0.5 percent per year e. Congress would set an annual inflation rate target
If a theory gives a scientist results that she does not want, then she should not believe in that theory
Indicate whether the statement is true or false
Refer to the table below. What is the long-run average cost of producing 30 units of output?
The table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run.
A. $7
B. $8
C. $9
D. $10