Suppose policy makers want to increase NX and keep Y constant. Which of the following policies would most likely achieve this?
A) a reduction in government spending
B) a real depreciation
C) a reduction in government spending and a reduction in the real exchange rate
D) a reduction in the real exchange rate and a tax cut
C
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Assume equilibrium real GDP per year is equal to full-employment real GDP. If aggregate demand falls, then
A) the price level will increase in the short run and decrease in the long run. B) long-run aggregate supply will eventually decrease too. C) there will be an expansionary ga
Oligopolists often use price discrimination to increase economic profit. Which of the following is not considered to be price discrimination?
a. discount admission for children to Disneyland b. senior citizen's bus discounts c. student rates for movie tickets d. "men only" clubs e. paperback and hardcover books
If nominal GDP = $900 billion and the public holds $300 billion in M2, then the velocity of the M2 money supply is
A) 1. B) 2. C) 3. D) 4.
Net exports is a negative number whenever
A. a nation's exports of goods and services exceed its imports. B. a nation's imports of goods and services exceed its exports. C. the nation's gross investment is on the decline. D. the nation's gross savings rate is on the decline.