Which of the following is most likely to lead to a decrease of 10% in the nominal demand for money?
A. An increase in real income of 5%
B. An increase of 10% in the price level
C. A decrease in real income of 5%
D. A decline of 10% in the price level
Answer: D
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The short-term fluctuations experienced in the economy due to changes in levels of economic activity are called
A. the natural rate of unemployment. B. a recession. C. the business cycle. D. an expansion.
A vertical aggregate supply schedule implies that
a. real wages cannot impact output. b. unemployment cannot impact output. c. aggregate demand is horizontal. d. the price level does not impact output.
Negative externalities cause loss of welfare not transmitted by market factors.
A. True B. False C. Uncertain
Gross domestic product is officially measured by adding together the