Which of these is a likely impact of a decrease in the price level in an economy on the aggregate supply in the economy?
a. An increase in the quantity of real GDP supplied
b. A decrease in the quantity of real GDP supplied
c. A leftward shift of the aggregate supply curve
d. A rightward shift of the aggregate supply curve
e. An increase in the slope of the aggregate supply curve
b
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Refer to the above figure. If the economy is currently at point C, then an increase in taxes will lead to
A) an increase in the price and an increase in real GDP. B) an increase in the price and a decrease in real GDP. C) a decrease in the price and a decrease in real GDP. D) a decrease in the price and an increase in real GDP.
At the optimal level of public goods provision, society's total willingness to pay per unit is equal to the marginal cost of producing the good.
Answer the following statement true (T) or false (F)
When the central bank buys $1,000,000 worth of government bonds from the public, the money supply:
A. increases by $1,000,000. B. decreases by $1,000,000. C. increases by less than $1,000,000. D. increases by more than $1,000,000.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and current international transactions become more negative (or less positive). b. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive). c. The quantity of real loanable funds per time period and current international transactions remain the same. d. The quantity of real loanable funds per time period rises, and current international transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.