Temporary tax cuts will have a greater influence on consumption expenditures than temporary tax cuts
Indicate whether the statement is true or false
FALSE
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In the figure above, the shift in the aggregate demand curve from AD1 to AD3 could be the result of an increase in
A) the price level. B) foreign incomes. C) aggregate supply. D) the foreign exchange rate. E) expected future income.
When the economy is in a recession, the Fed can ________ the federal funds rate, which ________ aggregate demand and ________ real GDP
A) lower; increases; decreases B) raise; decreases; increases C) lower; increases; increases D) raise; increases; decreases E) lower; decreases; decreases
For many goods, the price elasticity of demand increases over time because
A) people's incomes tend to increase over time. B) inflation increases all prices and incomes over time. C) the ability to find substitutes for a good whose price has risen increases over time. D) None of the above answers is correct.
In the above table, net exports equal a
A) surplus of $200 billion. B) deficit of $200 billion. C) surplus of $100 billion. D) deficit of $100 billion.