What would not lead to an overall decrease in demand for air travel in the U.S.?
A) The fear of future terrorist attacks
B) News of lengthy security delays at airports
C) An expected decrease in airfares
D) A substantial increase in bus and passenger train fares
C
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If a pizza maker pays $1 for tomatoes, $1 for cheese, $2 for sausage, and sells the pizza made with these ingredients for $7, then each pizza sold contributes how much to GDP?
A. $4 B. $7 C. $11 D. $3
An increase in government purchases of $200 billion will shift the aggregate demand curve to the right by
A) less than $200 billion. B) more than $200 billion. C) $200 billion. D) None of the above are correct. This policy shifts the long-run aggregate supply curve.
Suppose that a "small country" experiences growth strongly biased toward its export, cloth
A) this will have no effect on terms of trade for the country's trading partner. B) this will tend to worsen the country's terms of trade. C) this will tend to improve the country's terms of trade. D) this will tend to worsen terms of trade for the country's trading partner. E) this will tend to improve terms of trade for the country's trading partner.
Discretionary fiscal policy
What will be an ideal response?