Suppose Country A has a closed economy. If Country A's GDP remains constant, but its consumption and government spending increase, then:
a. Country A's national saving will decrease.
b. Country A's national saving will increase.
c. Country A's net taxes will increase
d. Country A's net taxes will decrease.
a
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Suppose that the economy is in long-run equilibrium and the government decided to engage in expected expansionary policy by increasing the money supply
If we assume rational expectations, which of the following statements is correct about the effect of expansionary policy in the long run? A) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will decrease. B) The unemployment rate will increase, real GDP will increase and the price level will increase. C) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will increase. D) The unemployment rate will decrease, real GDP will decrease and the price level will decrease.
The lower the nominal interest rate, the
A) greater the quantity of money supplied. B) greater the demand for money. C) smaller the demand for goods and services. D) smaller the quantity of money demanded. E) greater the quantity of money demanded.
Which of the following is NOT an important source of revenue for the federal government?
A) individual income taxes B) property taxes C) social insurance taxes and contributions D) corporate income taxes
Total revenues increase as output increases along sections of the demand curve that are:
A. downward sloping. B. price elastic. C. price inelastic. D. upward sloping.