According to the AS-AD model, when real GDP exceeds potential GDP, the unemployment rate is definitely
A) less than the natural unemployment rate.
B) greater than the natural unemployment rate.
C) rising.
D) falling.
E) equal to the natural unemployment rate.
A
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Which of the following decreases if the U.S. removes an import quota on computer components?
a. U.S. imports and U.S. exports. b. U.S. imports but not U.S. exports. c. U.S. exports but not U.S. imports. d. Neither U.S. exports nor U.S. imports.
A proportional tax results in:
A. a larger percentage of income going to taxes as income rises. B. the same percentage of income going to taxes for all taxpayers. C. the same dollar amount going to taxes for all taxpayers. D. a smaller percentage of income going to taxes as income rises.
There is a negative relationship between two variables if
A) neither variable moves. B) they move in the same direction. C) they move in opposite directions. D) one variable changes and the other does not.
A decrease in total revenue will result if
A) demand is inelastic and price increases. B) demand is elastic and price decreases. C) demand is inelastic and price decreases. D) demand is unitary elastic and price decreases.