Classical economists think general equilibrium is attained relatively quickly because
A) the real interest rate adjusts quickly.
B) the level of output adjusts quickly.
C) the real wage rate adjusts quickly.
D) the price level adjusts quickly.
D
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If the government enacts contractionary fiscal policy, it could:
A. reduce its spending. B. decrease personal income taxes. C. decrease corporate income taxes. D. All of these are contractionary.
A quota is one example of a protectionist policy.
a. true b. false
According to monetarists, a change in the money supply changes:
A. the velocity of money, which in turn changes the nominal GDP. B. investment spending, which in turn changes the nominal GDP. C. the interest rate, which in turn changes the nominal GDP. D. aggregate demand, which in turn changes the nominal GDP.
The primary deficit is equal to
A. the deficit plus net interest payments. B. total tax revenues minus net interest minus government expenditures. C. the amount by which government purchases, transfers, and net interest exceed tax revenues. D. the amount by which government purchases and transfers exceed tax revenues.