If the equilibrium price level is 135 but the actual price level is 150, then
A) firms increase their production because they are able to sell their output at a higher than expected price.
B) aggregate demand will decrease to restore equilibrium.
C) aggregate demand will increase to restore equilibrium.
D) the quantity of real GDP demanded is less than the quantity of real GDP supplied.
E) the quantity of real GDP demanded is greater than the quantity of real GDP supplied.
D
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Economic fine-tuning is the (usually frequent) use of
A) monetary policy that is based on a predetermined steady growth rate in the money supply to counteract even small undesirable movements in economic activity. B) only fiscal policy to counteract even small undesirable movements in economic activity. C) monetary and fiscal policies to counteract even small undesirable movements in economic activity. D) fiscal policy that both balances the budget and counteracts even small undesirable movements in economic activity.
As an individual consumes more of a product within a given period of time, it is likely that each additional unit consumed will yield
A. the same amount of satisfaction. B. less satisfaction for a while and then start to add more satisfaction. C. successively less satisfaction. D. successively more satisfaction.
An increase in the money supply will increase aggregate demand
Indicate whether the statement is true or false
The Economic Freedom Index includes which of the following measures of economic freedom within a nation?
A) Levels of economic regulation B) Freedom of pricing C) Stability of monetary policy D) Taxation levels E) All of the above.