Which of the following macroeconomic variables would likely be affected by a fiscal policy?
a. The nominal interest rate
b. The exchange rate
c. The discount rate
d. Employment
e. Money supply
d
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If a nation devotes a larger share of its current production to consumption goods, then
A) it must produce at a point within its PPF. B) its economic growth will slow down. C) some productive factors will become unemployed. D) its PPF will shift inward. E) its PPF will shift outward.
The economy’s self-correcting mechanism to eliminate a recessionary gap relies on
A. falling interest rates that shift the aggregate demand curve outward. B. falling wage rates that shift the aggregate supply curve outward. C. rising wage rates that shift the aggregate supply curve inward. D. increases in the price level that shift the aggregate supply curve inward.
Payments for the use of land and buildings are included in aggregate accounting as:
A. employee compensation. B. profits. C. rents. D. interest.
Refer to the above supply and demand graph. In the graph, point A is the current equilibrium level of output of this product and point B is the optimal level of output from society's perspective. S is the supply curve without a tax and St is the supply curve with a tax. If government corrects this externality problem with a tax so that all the costs are included in the cost of production, then the product price will be set at point:
A. E. B. D. C. F. D. G.