An increase in the supply of money will:
a. reduce the rate of interest and, thereby, trigger an increase in current spending by households and businesses.
b. reduce aggregate demand and real output.
c. increase only the general level of prices.
d. lead to a higher rate of unemployment.
a
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A recurring theme in economics is that people
A. can increase resources by limiting their economic wants. B. have unlimited resources but limited economic wants. C. have unlimited economic wants but limited resources. D. have limited economic wants and limited resources.
As a general rule, a recession occurs when there is a six consecutive month fall in:
a. nominal GDP. b. real GDP. c. the price level. d. the trade balance.
The second largest source of income for the federal budget is:
a. personal income taxes. b. corporate income taxes. c. payroll taxes. d. inheritance taxes.
A price taker is a buyer or seller who:
A. can affect the market price, but only when collaborating with other buyers or sellers. B. takes the market price and chooses to increase or decrease it. C. takes prices in the area and averages them together to set the price for his/her good. D. cannot affect the market price.