?Beginning from full-employment macro equilibrium, increase in government spending will cause real GDP to:
A. ?increase in the short run.
B. ?decline in the long run.
C. ?decline in the short run.
D. ? increase in the long run.
Answer: A
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Which of the following shifts the demand curve for movies leftward?
A) a decrease in the price of NetFlix, a substitute for movies B) a decrease in the price of movie tickets C) an increase in movie star salaries D) an increase in incomes, assuming movies are a normal good E) an increase in the price of movie tickets
Which of the following statements is correct about creating money?
a. Insurance companies can literally create money through the process of making loans. b. The banking system can literally create money through the process of making loans. c. The banking system cannot literally create money through the process of making loans. d. Insurance companies cannot literally create money through the process of making loans.
Which of the following is NOT an example of a consumption expenditure?
A. a digital camera you purchase to take on vacation B. a new county jail C. a motorcycle you purchase to ride on the weekends D. a restaurant meal
If the price elasticity of demand for pineapples is greater than 1, an increase in pineapple prices will
A. lower total revenue. B. not affect total revenue. C. raise total revenue. D. either raise or lower total revenue, but it is impossible to determine which.