Which of the following sequences best explains the negative slope of the aggregate-demand curve?
a. price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ?
b. price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ?
c. price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ?
d. price level ? ? equilibrium interest rate ? ? demand for money ? ? quantity of goods and services demanded ?
a
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In an attempt to manage expectations, a central bank may prefer to announce an unconditional commitment, because an unconditional commitment ________ than a conditional commitment
A) is inherently more credible B) may have an impact on expectations that is stronger C) places fewer constraints on policy makers D) is less likely to have unintended consequences
In general, the more complex the tax the:
A. more tax revenues it will generate. B. more efficient it will be. C. higher the administrative burden will be. D. more deadweight loss it will create.
If the natural unemployment rate is 5.5 percent, then the economy is in a recessionary gap when the actual unemployment rate is
A) greater than 5.5 percent. B) between 0 and 5.5 percent. C) 0 percent. D) 5.5 percent.
Suppose a U.S. government program subsidizes the production of domestic sugar producers and places a tariff (tax) on the importation of sugar from other countries. This program
a. helps the producers of sugar, but increase the opportunity cost of obtaining it. b. promotes the production of goods that consumers value highly relative to cost. c. creates wealth, because the government is providing the subsidies and imposing the tariffs. d. will reduce the opportunity cost of obtaining sugar and therefore lead to lower sugar prices.