A) Congress reduces purchases of new weapons systems.
B) The Fed buys bonds in the open market.
C) The price level falls.
D) Net exports fall.
F) B) and D)
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A) a decrease in the actual price level
B) a decrease in the expected price level
C) a decrease in the capital stock
D) an increase in the money supply
F) None of the above
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A) could be caused by an outbreak of war in the Middle East.
B) could be caused by a decrease in the expected price level.
C) causes the economy to experience an increase in the unemployment rate.
D) causes the economy to experience stagflation.
F) B) and C)
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B) False
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A) both the quantity of goods and services the government and customers abroad want to buy.
B) neither the quantity of goods and services the government wants to buy nor the quantity of goods and services customers abroad want to buy.
C) the quantity of goods and service the government wants to buy, but not the quantity of goods and services customers abroad want to buy.
D) the quantity of goods and services customers abroad want to buy, but not the quantity of goods and services the government wants to buy.
F) B) and C)
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A) workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce less at any given price level.
B) workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce more at any given price level.
C) will strike bargains for higher wages. In response to the higher wages firms will produce less at any given price level.
D) workers and firms will strike bargains for higher wages. In response to the higher wages firms will produce more at any given price level.
F) B) and C)
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A) people are more willing to lend, so interest rates rise.
B) people are more willing to lend, so interest rates fall.
C) people are less willing to lend, so interest rates fall.
D) people are less willing to lend, so interest rates rise.
F) A) and B)
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A) the price and quantity of a particular good.
B) unemployment and output.
C) wages and employment.
D) real GDP and the price level.
F) A) and C)
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A) both sticky price theory and sticky wage theory
B) sticky price theory but not sticky wage theory
C) sticky wage theory but not sticky price theory
D) neither sticky wage theory nor sticky price theory
F) A) and B)
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A) increase, the dollar to appreciate, and net exports to increase.
B) increase, the dollar to depreciate, and net exports to decrease.
C) decrease, the dollar to depreciate, and net exports to increase.
D) decrease, the dollar to appreciate, and net exports to decrease.
F) A) and B)
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A) long-run aggregate supply right.
B) long-run aggregate supply left.
C) short-run aggregate supply right.
D) short-run aggregate supply left.
F) A) and D)
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A) people want to hold more money.
B) the interest rate rises.
C) investment spending rises.
D) All of the above are correct.
F) B) and D)
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A) higher than desired prices which increases their sales.
B) higher than desired prices which depresses their sales.
C) lower than desired prices which increases their sales.
D) lower than desired prices which depresses their sales.
F) A) and C)
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A) people are more willing to lend, so interest rates rise.
B) people are more willing to lend, so interest rates fall.
C) people are less willing to lend, so interest rates fall.
D) people are less willing to lend, so interest rates rise.
F) All of the above
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A) short-run aggregate supply right.
B) short-run aggregate supply left.
C) aggregate-demand right.
D) aggregated-demand left.
F) C) and D)
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A) is determined by the things that determine output in the classical model.
B) is at the point where the unemployment rate is zero.
C) shifts to the right when the price level increases.
D) is at the point where the economy would cease to grow.
F) A) and B)
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A) purchases of stock and bonds
B) purchases of services such as visits to the doctor
C) purchases of capital goods such as equipment in a factory
D) purchases by foreigners of consumer goods produced in the United States
F) C) and D)
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A) It refused to provide banks funding and made no significant changes in government spending.
B) It refused to provide banks funding but made a large increase in government spending.
C) It became part owner of some banks but made no significant change in government spending
D) It became part owner of some banks and made a large increase in government spending.
F) A) and C)
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A) lower than desired prices which increases their sales.
B) lower than desired prices which depresses their sales.
C) higher than desired prices which increases their sales.
D) higher than desired prices which depresses their sales.
F) B) and D)
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A) taxes rise and shifts left if stock prices rise.
B) taxes rise and shifts left if stock prices fall.
C) taxes fall and shifts left if stock prices rise.
D) taxes fall and shifts left is stock prices fall.
F) C) and D)
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