Which of the following would raise the price level in both the short and long run?
a. an increase in taxes
b. an increase in government expenditures
c. a decrease in the minimum wage
d. an increase in the capital stock
b
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The figure above shows how the PPF for cell phones and new cell-phone factories can expand. In the figure, if the economy chose the point on this year's PPF that is below point K, the next year's PPF would
A) shift inward along the vertical axis. B) shift outward along the horizontal axis farther than the new PPF shown in the figure. C) shift outward along the vertical axis, not along the horizontal axis. D) shift outward along the horizontal axis, but not as far as the new PPF shown in the figure. E) shift inward along the horizontal axis. The figure above shows Liz's and Joe's production possibilities for Salads and Smoothies.
In a natural monopoly, government regulation is often used to ensure more beneficial price and output combinations for consumers in the market than would exist in the absence of regulation
a. True b. False Indicate whether the statement is true or false
Contractionary monetary policy
What will be an ideal response?