Some economists, called supply-siders, argue that changes in the money supply exert a strong influence on aggregate supply
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose real disposable income increases by $1,000. Given this information, we know that
A) consumption will generally increase by more than $1,000. B) saving will generally increase by exactly $1,000. C) consumption will generally increase by exactly $1,000. D) consumption will generally increase by less than $1,000.
Expenditures on advertising ________
A) can lower average total cost if the advertising increases the quantity sold by a large enough amount B) cannot lower average total cost because when a firm advertises it increases its costs C) always lower average total cost because whenever a firm advertises, it increases the quantity sold D) are variable costs so do not affect the average total cost
According the AS/AD model, in the long run, expansionary monetary policy will
a. increase both real GDP and the price level. b. decrease both real GDP and the price level. c. decrease the price level and leave real GDP unchanged. d. increase the price level and leave real GDP unchanged. e. increase real GDP and reduce the price level.
The size of a country's GDP is the best way to identify a less-developed country
Indicate whether the statement is true or false