Which of the following produces a movement along the aggregate demand curve and does not shift the aggregate demand curve?
A) a change in government expenditures on goods and services
B) a change in monetary policy
C) a change in the price level
D) a change in foreign incomes
E) a change in expectations about the future
C
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When the exchange rate increases from 4 francs per dollar to 6 francs per dollar, the dollar has ________.
A. become overvalued B. appreciated C. depreciated D. become undervalued
According to the quantity theory of money, if the money supply grows at 25% and the inflation rate is 20%, the growth in real GDP is
A) 0.8%. B) 1.25%. C) 5%. D) 45%.
"Tax cuts, by providing incentives to work, save, and invest, will raise employment and lower the price level." This argument is made by the:
a. Keynesian economists. b. supply-side economists. c. classical economists. d. monetarists.
For individuals who are holding money or fixed dollar value assets, inflation has the effect of: a. improving their ability to purchase goods and services with those dollars. b. reducing their ability to purchase goods and services with those dollars. c. increasing the purchasing power of those dollars
d. demonstrating the interest rate effect.