If aggregate supply is upward sloping, fiscal stimulus causes _______ in aggregate demand and _______ in prices.
A. A decrease; a decrease
B. A decrease; an increase
C. An increase; a decrease
D. An increase; an increase
D. An increase; an increase
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Which of the following will lead to a decrease in the gross domestic product of a country, all other variables remaining unchanged?
A) An increase in exports B) An increase in the expenditure on investment C) An increase in imports D) An increase in the expenditure on consumption
Which of the following is an example of a pure market economy?
a. ?United States b. ?Switzerland c. ?Singapore d. ?No nation has a pure market economy
Which of the following is NOT a characteristic of monopolistic competition?
A. easy entry of new firms in the long run B. sales promotion and advertising C. large number of sellers D. homogeneous product
Monetary policy refers to the actions the
A) President and Congress take to manage the money supply and interest rates to pursue their economic objectives. B) Federal Reserve takes to manage the money supply and interest rates to pursue its macroeconomic policy objectives. C) President and Congress take to manage government spending and taxes to pursue their economic objectives. D) Federal Reserve takes to manage government spending and taxes to pursue its economic objectives.