In which case can we be sure real GDP rises in the short run?
a. government purchases increase and taxes rise.
b. government purchases increase and taxes fall.
c. government purchases decrease and taxes rise.
d. government purchases decrease and taxes fall.
b
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Refer to the scenario above. The principal in this case is:
A) $300. B) $1,000. C) $1,300. D) $2,300.
Economists refer to the actions people take after they have entered into a transaction that makes the other party to the transaction worse off as
A) economic inefficiency. B) moral hazard. C) market failure. D) bad faith.
Refer to the above figure. The firm is currently producing at Q1. The firm should
A) reduce production. B) leave production as it is. C) increase production. D) shut down.
For many years country A has had a lower unemployment rate than country B. According to the long-run Phillips curve which of the following could explain this? Country A has
a. maintained a higher money supply growth rate. b. maintained a lower money supply growth rate. c. a higher minimum wage than country B. d. a lower minimum wage than country B.