Assume that GDP = $10,000 and the MPC = 0.75. If policy makers want to increase GDP by 30 percent, by how much should they decrease taxes?
A) $300 B) $750 C) $1,000 D) $3,000
C
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Suppose coffee prices, gasoline prices, and concert ticket prices are all sharply higher this year compared to last year. The economy is experiencing
A) disinflation. B) deflation. C) inflation. D) possibly A, B, or C above.
Stabilization policy may be necessary to slow down the speed of the adjustment process
a. True b. False Indicate whether the statement is true or false
The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:
A. not alter the economy's full-employment real GDP. B. increase the economy's full-employment real GDP. C. reduce the quantity of goods and services purchasers will demand. D. improve the overall efficiency of resource use.
Which of the following were factors in the financial crisis of 2007-2008?
A. Securitization. B. Mortgage default crisis. C. Subprime mortgage loans. D. All of these.