In the long run, a higher government deficit does NOT affect equilibrium real Gross Domestic Product (GDP), so that continuous increases in the government deficit will
A. reduce the price level.
B. lead to greater tax revenues.
C. increase the unemployment rate.
D. reduce spending on privately provided goods and services.
Answer: D
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If a tariff is increased to a level high enough to prevent any imports from entering the country, the tariff has the same effect as
a. an export subsidy. b. a voluntary export restraint. c. dumping. d. an embargo.
In the United States, the money for loans to businesses comes mainly from
a. corporate profits. b. the federal government. c. savings held in lending institutions. d. state and local governments.
If the price level rises, what will happen to the level of real GDP supplied?
a. It will usually decrease. b. It will usually increase. c. Nothing. d. It will decrease at first and then increase.
If something happens to alter the quantity demanded at any given price, then
a. the demand curve becomes steeper. b. the demand curve becomes flatter. c. the demand curve shifts. d. we move along the demand curve.