You are the County Commissioner of Hazard County. Local business leaders are thrilled that Ms. Daisy has planted a panorama of flowers around her store front designed to look like cute kittens. Tourists have been coming from neighboring towns to see the? flowers, and this tourism has been increasing business activity for many businesses. The local business leaders would like you to convince Ms. Daisy to plant more flowers so that tourism continues to increase.
Refer to the scenario above. The business generated for other stores by Ms. Daisy's flower display is an example of a:
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Other things being equal, the lower planned real expenditures along an aggregate demand curve are, the
A) lower the level of endowments. B) higher the price level. C) lower the price level. D) more the production possibilities cure shifts to the left.
Long Beach Island, off the coast of New Jersey, is considering building a sand barrier to protect the houses on the island from future hurricanes. For residents of Long Beach Island, this barrier system would be a
A) private good. B) natural monopoly. C) common resource. D) public good.
Suppose Congress increased spending by $100 billion and raised taxes by $100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
A) Real equilibrium GDP will fall. B) Real equilibrium GDP will rise. C) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value. D) There will be no change in real equilibrium GDP.
If the equation of exchange holds, and if the velocity of money and total output are fixed, then, if the money supply doubles,
A) the price level will increase by half. B) the price level will decrease by half. C) the price level will double. D) the price level will decrease by 25 percent.