From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly slower than long-run aggregate supply, then the Federal Reserve would most likely
A) increase income tax rates.
B) decrease income tax rates.
C) increase interest rates.
D) decrease interest rates.
Answer: D
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The equilibrium price under an import quota is below the price that occurs with free trade
Indicate whether the statement is true or false
As the federal funds rate changes, other interest rates tend to move in the same direction
Indicate whether the statement is true or false
National income is equal to
A) GDP minus depreciation. B) GNP plus depreciation. C) disposable personal income plus depreciation plus personal taxes. D) personal income minus personal taxes.
Joe and Pam are neighbors. Joe asks Pam to drive him to the airport. Before leaving, Joe pays for Pam to fill her car's gas tank at the local gas station. Joe's trip to the airport would be ________.
A. not counted in GDP because the trip does not involve any formal market transactions B. counted in GDP because Joe purchased the gas C. not counted because nothing was actually produced D. counted in GDP because Joe and Pam represent different households