If the expected price level increases at the same time that the federal government cuts taxes, in the short run
A) aggregate output and the price level will both increase.
B) aggregate output will increase, but the price level will fall.
C) aggregate output and the price level will both fall.
D) the price level will increase, but aggregate output may either increase or decrease.
D
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The large increase in household wealth in the United States in the 1990s was the result of:
A. large capital gains. B. a low saving rate. C. a high saving rate. D. high rates of inflation.
The Justice Department is most likely to oppose a proposed merger on the basis of the Herfindahl-Hirschman Index when the post-merger HHI is:
A) less than 100. B) less than 1000. C) between 1000 and 1800. D) greater than 1800.
When a country imposes capital controls, it is controlling the
A) amount of money flowing in or out of the country. B) amount of reserves that banks must hold. C) portion of bank deposits that must be held at its central bank. D) portion of bank deposits that must be used for loans to the government.
If there is a decrease in market demand for a product exchanged in a perfectly competitive industry, it results in an industry contraction that will end when the product price is
A. less than the marginal cost faced by the firms. B. greater than the marginal cost faced by the firms. C. equal to the marginal cost faced by the firms. D. greater than the average cost faced by the firms.