If the economy is growing beyond potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) oil prices.
B) taxes.
C) government purchases.
D) the money supply and a decrease in interest rates.
B
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Which of the following economies performed the worst between 1960 and 2011?
A) South Korea B) India C) Japan D) Taiwan
The graph shown shows a subsidy to buyers. Before the subsidy is put in place, the buyers bought _____ units and paid _____ for each of them
A. 100; $46
B. 100; $30
C. 150; $40
D. 150; $24
According to the text, Zambia faces decreasing living standards because
a. it is hoarding gold b. the kwacka is rising in value relative to the dollar c. it has a positive balance on its current account d. it has taken steps to reduce its international debt e. its debt service is relatively high
A reduction in the central bank's inflation target will result in:
A. the long-run aggregate supply curve having an upward slope. B. a decrease in potential output. C. no change in potential output. D. an increase in potential output.