In the above figure, a movement from point C to point B could be explained by
A. an increase in the price level.
B. increased government taxation.
C. an increase in the quantity of money in circulation.
D. the real-balance effect.
Answer: B
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If the official settlements account is zero, whenever the United States has a current account deficit, it must also have a capital account deficit
Indicate whether the statement is true or false
If policymakers decrease aggregate demand, then in the short run the price level
a. falls and unemployment rises. b. and unemployment fall. c. and unemployment rise. d. rises and unemployment falls.
Which of the following goods is most likely to be associated with monopolistic competition?
a. Gasoline b. Milk c. Cookies d. Wheat
Give two examples other than oligopoly that show how the prisoners' dilemma helps to explain behavior.
What will be an ideal response?