If the U.S. government increased taxes without changing spending, the U.S. AD curve would:
A. become flatter.
B. become steeper.
C. shift to the left.
D. shift to the right.
Answer: C
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The most frequently used tool of U.S. monetary policy is
a. the discount rate. b. the reserve requirement. c. open-market operations. d. moral suasion.
Consider an economy in equilibrium, and assume no change in aggregate demand. An earthquake that destroys many factories across the country would result in a(n):
a. increase in the average price level and a decrease in real GDP. b. increase in the average price level and no change in real GDP. c. increase in the average price level and an increase in real GDP. d. decrease in the average price level and an increase in real GDP. e. decrease in the average price level and a decrease in real GDP.
The following is an example of a pure public good
A. national defense. B. Yellowstone National Park. C. public education. D. clean air.
If quantity demanded for rice decreases by 4% when the price of rice increases by 8%, we know that the price elasticity of rice is equal to:
a. -2.5 b. -0.5 c. -2.0 d. -0.4