According to Keynesian economists, which of the following is not a consequence of increasing the money supply?
a. A lower interest rate.
b. Greater investment.
c. Lower real GDP.
d. Higher real GDP.
c
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
How does a change in quantity supplied differ from a change in supply?
A) A change in quantity supplied shifts the supply curve; a change in supply is a movement along the curve. B) A change in one of the ceteris paribus conditions affects quantity supplied, not supply. C) A change in the price affects quantity supplied, not supply. D) There is no difference.
Which of the following is not a lesson that history has taught about the development of physical and electronic currencies:
a. The private sector usually finds a way to circumvent these taxes and restrictions. b. Commerce usually follows community. c. To gain widespread trust and usage, currencies do not have to be backed by precious metals. d. All of the statements are positive lessons. None is false.
Is this the correct definition of GDP when measured by production? "GDP for a nation's economy is all goods and services produced domestically in a year."
a. Yes b. No