The slope of the aggregate supply curve shows that the ________ the price level, the ________
A) lower; is the quantity of potential GDP supplied
B) lower; greater is the quantity of real GDP supplied
C) higher; is the quantity of potential GDP supplied
D) higher; greater is the quantity of real GDP supplied
E) higher; smaller is the quantity of real GDP supplied
D
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Our currency is issued by
A. the United States Treasury. B. the Federal Reserve. C. individual commercial banks. D. the Internal Revenue Service.
In relation to the corporation, its bondholders are
a. borrowers b. lenders c. customers d. managers e. owners
In the new classical model, a $100 billion increase in government purchases financed by borrowing will
a. increase the real interest rate, which will crowd out private spending. b. lead to a $100 billion increase in real GDP. c. lead to a $400 billion increase in real GDP if the marginal propensity to consume is three-fourths. d. leave the interest rate, aggregate demand, and real output unchanged.
The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($940); personal consumption expenditures ($4,920); imports ($170); exports ($133); gross private domestic investment ($640). What is GDP in this economy?
a. $6,633 billion b. $6,463 billion c. $6,500 billion d. $6,537 billion