Which of the following would cause aggregate demand to shift to the right?
A. Decreased government spending
B. Increased income taxes
C. Decreased consumer confidence
D. Decreased corporate income taxes
Answer: D
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The Bretton Woods system confronted severe problems in the 1960s, problems which included
A) dollars held by foreign central banks exceeded gold reserves held by the United States. B) some countries with overvalued currencies refused to devalue their currencies. C) the increased demand for gold brought about by lifting the prohibition against U.S. citizens owning gold. D) all of the above
In the quantity equation framework for understanding the determinants of long-run inflation, a drop in consumer confidence ________ velocity, putting ________ pressure on inflation
A) raises, upward B) raises, downward C) lowers, upward D) lowers, downward
If people correctly anticipate the effects of expansionary policy, an increase in the growth rate of aggregate demand will tend to increase real GDP: a. in both the short run and the long run. b. in the short run but not the long run
c. in the long run but not the short run. d. in neither the short run nor the long run.
In an increasing-cost industry, the long-run market supply curve is
a. horizontal b. vertical c. upward sloping d. downward sloping e. nonexistent