What is a black market?
What will be an ideal response?
A black market is a market in which buying and selling take place at prices that violate government price regulations.
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If federal taxes are cut by $10 billion, aggregate demand
A) increases by $10 billion. B) increases by $10 billion multiplied by the government expenditure multiplier. C) increases by $10 billion multiplied by the tax multiplier. D) decreases by $10 billion. E) decreases by $10 billion multiplied by the tax multiplier.
Refer to Scenario 1 . The student has already taken 9 exams and scored a 80 on the 9th one. His average is a 70 after the 9th exam. If he scores a 70 on the tenth exam what will happen to his average?
What will be an ideal response?
An unexpected increase in aggregate demand results in a decrease in real wages in the short run
a. True b. False Indicate whether the statement is true or false
The AD-AS model implies that, in the long run,
a. the economy adjusts very quickly to demand shocks b. changes in government spending have no effect on GDP c. the price level never changes d. a mixture of fiscal and monetary policy is necessary to achieve full employment e. the Fed controls output