If both demand and supply increase, price will
a. always increase
b. always decrease
c. increase only if supply increases more than demand does
d. increase only if demand increases more than supply does
e. decrease only if supply increases less than demand does
D
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According to real business cycle theory, business cycles
a. can be eliminated with appropriate monetary and fiscal policy. b. are natural and efficient reactions to changes in productivity. c. do not occur. d. occur infrequently. e. none of the above.
Vertical equity refers to a tax system in which individuals with similar incomes pay similar taxes
a. True b. False Indicate whether the statement is true or false
Which of the following is not a component of M1?
A. Currency B. Passbook savings account C. Checking accounts D. Traveler's checks issued by non-banks
A plot of points representing the rate of inflation and the unemployment for the United States since 1953 reveals that
A. there is an inverse relationship between the two variables. B. there is a positive relationship between the two variables. C. there does not appear to be any trade-off between the two variables. D. none of these.