Government expenditures increase. What happens to the price level and output? Explain how the change in the price level and output effect the inflation rate and the unemployment rate
The price level and output rise. Because the price level rises, the inflation rate is higher. Because output is higher, the unemployment rate is lower.
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According to the Monetarists a decrease in investment spending initially __________ unemployment so that the price level __________. The resulting __________ in the real money supply __________ spending
A) increases; rises; increase; decreases B) increases; falls; increase; increases C) increases; falls; increase; decreases D) decreases; rises; increase; increases
In 2003, the Social Security tax was around _____ of total federal taxes
a. 17 percent b. 26 percent c. 31 percent d. 39 percent
Specialization and exchange result from differences in productivity that lead to:
A. opportunity cost. B. comparative advantage. C. absolute advantage. D. self-sufficiency.
When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it, ________ occurs
A) allocative efficiency B) productive efficiency C) equity D) efficient central planning