Ceteris paribus, if the average price level falls, then the _____ effect will result in _____ in the purchases of goods and services.
A. Real balances; an increase
B. Foreign trade; a decrease
C. Interest rate; a decrease
D. Cost; an increase
Answer: A. Real balances; an increase
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Refer to the figure above. What is the equilibrium wage rate and equilibrium level of employment?
A) $35 and 10 units of labor B) $20 and 15 units of labor C) $15 and 35 units of labor D) $25 and 20 units of labor
Only two states do not have state personal income taxes
a. True b. False
The efficient functioning of an SCU depends on the accuracy and relevance of the information it receives from the various departments of the organization
Indicate whether the statement is true or false
The cyclically adjusted deficit as a percentage of GDP is 2 percent in year 1. This deficit becomes 1 percent of GDP in year 2. It can be concluded from year 1 to year 2 that:
A. fiscal policy was expansionary. B. the federal government is increasing spending. C. the federal government is decreasing taxes. D. fiscal policy was contractionary.