In the simple Keynesian framework, the price level
A) is fixed.
B) varies directly with unemployment.
C) varies inversely with wages.
D) is indeterminate.
A
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If the United States negotiates a voluntary export restraint with international sugar producing nations, then
A) U.S. sugar buyers pay a lower price for sugar. B) U.S. sugar producers produce a smaller quantity. C) imports of sugar increase. D) the U.S. government collects less revenue than if it imposed a tariff on sugar. E) the foreign governments collect more revenue than if a tariff is imposed on sugar.
Prior to 1970, mortgages were ________ resold in the secondary market
A) never B) often C) rarely D) always
Ceteris paribus means
A) one variable too many. B) the correct relationship specified. C) assuming economic motives. D) all other things held constant or nothing else changes.
Which one of the following would NOT increase aggregate demand?
A. a reduction in real interest rates B. tax decreases C. an increase in long-run aggregate supply D. an increase in the amount of money in circulation