A decrease in aggregate demand, all other things unchanged, will generate _______ in potential output and _______ in the price level.
A. an increase; no change
B. a decrease; no change
C. no change; an increase
D. no change; a decrease
Ans: D. no change; a decrease
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The institutionalist theory of inflation differs from that of the quantity theory by focusing on:
A. the rate of growth in the money supply. B. how firms determine wages and prices. C. the institutions that influence how the money supply is determined. D. the equation of exchange.
The best measure of a country's living standard is______
a. real gdp per capita b. average annual investments c. CPI-based inflation rates d. the minimum wage
When one player has to make a decision before the other player, the situation is called a:
A. commitment game. B. simultaneous game. C. sequential game. D. prisoner's dilemma.
The smaller the MPC: a. the smaller the fraction of an increase in AD due to an increase in government purchases that is consumption. b. the greater the fraction of an increase in AD due to an increase in government purchases that is consumption. c. the greater the change in government purchases required to achieve a given change in AD
d. (a) and (c)