Suppose the economy is self-regulating, the price level is 150, the quantity demanded of Real GDP and the quantity supplied of Real GDP in the short run both equal $4.3 trillion, and the quantity supplied of Real GDP in the long run is $4.1 trillion. Given all of this information, we can conclude that the economy ____________ in short run equilibrium, and that the price level in long run
equilibrium will be _____________ than 150.
A) is not; less
B) is; more
C) is; less
D) is not; more
B
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If a nation imposes a tariff on an imported product, then that nation will experience a(n)
A. decrease in the supply of, and an increase in the quantity demanded of, the product. B. increase in the quantity supplied of, and a decrease in the price of the product. C. decrease in demand and a decrease in the price of the product. D. decrease in quantity supplied and an increase in the price of the product.
Goods and services that the United States sells to other nations are called
A) exchanges. B) world goods. C) imports. D) exports. E) bartered goods.
According to Baumol and Blinder, the real-world multiplier will be smaller than 1/(1 ? MPC) because the 1/(1 ? MPC) measure is based on
a. a model that ignores inflation associated with the expansion of income. b. a model that ignores taxes that tend to change as income changes. c. a model that ignores the effects of international trade. d. all of the above.
Which of the following contributes to the popularity of the argument that government spending expands employment?
What will be an ideal response?