If the price of inputs falls and the government deficit rises:
a. Aggregate demand falls, and aggregate supply rises.
b. Aggregate demand and aggregate supply rise.
c. Neither aggregate demand nor aggregate supply change.
d. None of the above.
.B
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The new classical explanation of aggregate supply in the short run builds on research by
A) Irving Fisher. B) John Maynard Keynes. C) Robert Lucas. D) Robert Solow.
The price of a financial asset should equal the
A) present value of the payments to be received from owning the asset. B) future value of the payments to be received from owning the asset. C) face value of the asset less the future payments to be received from owning the asset. D) coupon value of the asset divided by the effective interest rate at the time the asset was purchased.
What is the difference between marginal and average tax rates? Under what marginal and average tax rate conditions would an income tax be progressive?
What will be an ideal response?
The income-expenditure model of real GDP determination is due to the work of
A) Adam Smith. B) J. B. Say. C) John Maynard Keynes. D) Roger Miller.