A positive temporary supply side shock will:
A. increase the level of potential output in the long run.
B. decrease the price level in the long run.
C. increase the price level in the long run.
D. have no effect in the long run.
Answer: D
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Assuming full employment, if the private sector saves 8 percent of its income and the government raises taxes by $500 to finance public investments, total investment will increase by $460
Indicate whether the statement is true or false
Which of the following statements is true?
A. Treasury bills mature in 2 to 10 years. B. Treasury notes mature in 13 or 26 weeks. C. Treasury bills, notes, and bonds are considered to be very safe investments. D. Municipal bonds are issued to help the federal government build new projects such as highways and stadiums.
A _______ is an enforceable claim on a good or service.
A. deed B. government decree C. price D. property right
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