If there is a dollar-for-dollar direct expenditure offset, then
A. increases in aggregate demand will also increase long-run aggregate supply.
B. increases in aggregate demand will increase the price level, but leave real output unchanged.
C. increases in aggregate demand will increase real output, but leave the price level unchanged.
D. increases in government spending will not increase aggregate demand.
Answer: D
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Which of the reasons given for tariff protection make consumers better off by generating lower prices?
A) infant industry argument B) protecting U.S. jobs argument C) anti-dumping argument D) None provides lower prices for domestic consumers.
All other factors equal, as nominal interest rates increase, checking account balances should:
A. remain constant. B. be converted to cash. C. decrease. D. increase.
As the interest rate falls, the quantity
A) demanded of money falls. B) demanded of money rises. C) supplied of money rises. D) supplied of money falls.
Which of the following is an example of capital?
A) a gravel truck B) a savings account C) a share of General Motors stock D) a lake