Which of the following will, unambiguously, increase the price level?
A. an increase in government spending and an increase in the Z factors
B. an increase in government spending and a decrease in the Z factors
C. a decrease in government spending and an increase in the Z factors
D. a decrease in government spending and a decrease in the Z factors
Answer: B
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In the above figure, the shift in the supply curve from S to S2 reflects
A) an increase in the supply of pizza. B) an increase in the quantity of pizza supplied. C) a decrease in the quantity of pizza supplied. D) a decrease in the supply of pizza. E) a decrease in the supply of pizza and a simultaneous decrease in the quantity of pizza supplied.
Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) lower; lower B) lower; higher C) higher; higher D) higher; lower
Whenever marginal revenue is greater than marginal cost, a profit-maximizing firm should reduce its output
a. True b. False Indicate whether the statement is true or false
Final goods:
What will be an ideal response?