If aggregate demand increases in the intermediate range of the aggregate supply curve then the:
a. price level rises and real GDP falls.
b. price level rises and real GDP rises.
c. price level falls and real GDP falls.
d. price level falls and real GDP rises.
b
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Refer to Scenario 14-2. As a result of Kristy's deposit, Bank A's excess reserves increase by
A) $2,000. B) $8,000. C) $10,000. D) $50,000.
A sales tax is an example of a(n)
a. payments tax b. property tax c. use tax d. excise tax e. company tax
The higher the degree of oligopolization
A. the greater the likelihood of collusion. B. the smaller the likelihood of collusion. C. the greater the likelihood of product differentiation. D. the greater the likelihood of cut-throat competition.
As long as two firms have different abatement costs, they:
A. can benefit under a system of marketable pollution permits by trading the right to pollute. B. will prefer a pollution tax to a system of marketable pollution permits. C. will decrease the price of their product if taxed on the amount of pollution they emit. D. will not be able to benefit from trading the right to pollute under a system of marketable pollution permits.