If the government increases spending and there is a complete direct expenditure offset, then
A. aggregate demand and real Gross Domestic Product (GDP) will increase by the amount of the spending increase.
B. aggregate demand and real Gross Domestic Product (GDP) will not change.
C. the government spending multiplier will be greater than zero.
D. the price level will drop.
Answer: B
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The distinctive characteristic of an oligopolistic market structure is that there are recognizable interdependencies among the decisions of the firms
a. true b. false
Which of the following is a sustained decrease in the price level?
a. hyperinflation b. disinflation c. deflation d. none of the above are considered a sustained decrease in the price level.
B. Structural unemployment.
A. Frictionally unemployed B. Structurally unemployed C. Cyclical unemployed D. Seasonally unemployed
According to the monetarists, the velocity of money is
A. constant by definition. B. highly variable and unpredictable. C. constant as a matter of empirical proof. D. not constant but predictable.