Which of the following will reduce the price level and real output in the short run?
a. an increase in government purchases.
b. an decrease in oil prices
c. a decrease in the money supply
d. technical progress
c
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You would be more likely to find a motel room than a camping site if you were traveling through the West during the height of the tourist season and had no advance reservation if
A) camping sites are expensive to maintain. B) camping sites are less numerous. C) most camping sites were managed by government agencies. D) most motels do not accept advance reservations. E) motels more often accept credit cards.
Relative purchasing power parity occurs when
A) purchasing power parity holds between every two countries. B) purchasing power parity only holds in recessions. C) the nominal exchange rate is constant. D) the real exchange rate is constant.
Figure 15-1 above displays the consumption pattern over the lifetime of an individual. Saving and asset accumulation occur during the years ________ according to ________ theory of consumption
A) R to L; Keynes' B) R to L; Modigliani's C) O to R; Friedman's D) O to R; Modigliani's
When the Social Security Administration holds U.S. Treasury Bonds
A) interagency borrowing has occurred and the government owes itself. B) there is a balanced budget. C) an entitlement has occurred. D) the gross public debt has increased.