Refer to Table 16-2. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should
A) decrease government purchases. B) buy Treasury securities.
C) decrease the discount rate. D) conduct expansionary fiscal policy.
A
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An increase in wages will shift the supply curve up and to the left
Indicate whether the statement is true or false
The tariff levied in a "large country" (Home), lowers the world price of the imported good. This causes
A) foreign consumers to demand less of the good on which was levied a tariff. B) domestic demand for imports to decrease. C) domestic demand for imports to increase. D) foreign suppliers to produce less of the good on which was levied a tariff. E) no change in the foreign price of the good it imports.
Refer to the graph above for a private closed economy. In this economy, investment is:
A. $50 billion
B. $100 billion
C. $150 billion
D. $200 billion
Suppose the public increases the level of savings in anticipation of higher future taxes to service the national debt. This is an example of
A) Reaganomics. B) Ricardian equivalence. C) Smithsonian equivalence. D) Monetary equivalence.