If the interest rate increases due to an increase in government purchases, the rise in real GDP will be greater than what would have occurred if the interest rate had remained stable
a. True
b. False
B
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Provide a simple definition of the price elasticity of demand and explain why knowing the price elasticity for her product is useful to the firm's manager
What will be an ideal response?
In the monetary intertemporal model, the long-run effects of an increase in the level of money include
A) an increase in employment. B) lower output. C) higher real wages. D) higher nominal wages.
The corporate tax applies to firms' total revenues
a. True b. False Indicate whether the statement is true or false
The total revenue received by sellers of a good is the same amount as the:
A. Total income earned by the buyers B. Total amount spent on the good by the buyers C. Price paid by the buyers for each unit of the good D. Profits earned by the sellers of the good