If the government decreases its purchases of goods and services by $12,000 and the MPS is 0.5, GDP and income will eventually decrease by
A) $2,400. B) $6,000. C) $24,000. D) $60,000.
C
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If the president begins making laws that citizens must abide by or be punished based on the opinion of the president, this is called the:
A. rule of man B. rule of one C. rule of force D. rule of law
A decrease in aggregate demand tends to cause a ____ a short run Phillips curve at first, then cause a ____ in the short run Phillips curve as people adjust their expectations. a. Movement up along; upward shift
b. Movement up along; downward shift. c. Movement down along; upward shift. d. Movement down along; downward shift.
In a very basic principal-agent model, output is contractible if:
A. output can be observed with some positive cost. B. the employee produces many products. C. output can be observed at zero cost. D. the employee works in a team.
Currency held outside banks + demand deposits + travelers checks + other checkable deposits =
A. M3 - M1. B. M2 - M1. C. M3. D. M1.