In the aggregate demand-aggregate supply model in the short run, a decrease in the money supply is likely to cause a(n):
a. increase in both the price level and real GDP
b. decrease in both the price level and real GDP.
c. increase in real GDP and a decrease in the price level.
d. decrease in real GDP and an increase in the price level.
e. increase in the price level only.
b
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At the beginning of the year, Becky's wealth was $30,000. During the year, she earned $50,000 of income, paid $6,000 in taxes and consumed $43,000 of goods and services. What is Becky's wealth at the end of the year?
What will be an ideal response?
People buy insurance
a. because they are risk averse. b. to defer consumption. c. because of externalities. d. to maximize their welfare. e. to ensure against poor health.
The selection of a new policy takes place during a period of time known as the _____
a. activity lag b. decision-making lag c. effectiveness lag d. implementation lag e. recognition lag
The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($940), personal consumption expenditures ($4920), imports ($170), exports ($133), and gross private domestic investment ($640). What is GDP in this economy?
A. $6537 billion. B. $6633 billion. C. $6500 billion. D. $6463 billion.