Explain the separate effects of each event on U.S. real GDP and the price level, starting from a position of long-run equilibrium
What will be an ideal response?
The expansion in the world economy increases U.S. exports and increases aggregate demand, which increases real GDP and raises the price level. The expectation of higher profits in the future increases investment and boosts aggregate demand, which increases real GDP and raises the price level. The increase in government expenditure on goods and services increases aggregate demand, which increases real GDP and raises the price level.
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Why do the governments of some developing countries use tariffs to raise revenue?
What will be an ideal response?
In 2012, more than 60% of the privately held national debt was held by
a. foreign investors. b. Federal Reserve banks. c. large corporations. d. government trust funds.
The fundamental source of monopoly power is
a. barriers to entry. b. profit. c. decreasing average total cost. d. a product without close substitutes.
Given the following data, what is the distance from the origin to the point where the total expenditures (TE) curve cuts the vertical axis? C = $800 + 0.85Yd I = $350 G = $420
A) $1,570 B) $1,150 C) $1,220 D) $770 E) ?$1,220.85