In the short run, a contractionary fiscal policy would cause
a. the AD curve to shift to the right
b. equilibrium real GDP to decrease and the price level to increase
c. the AS curve to shift left
d. the economy to slide along the AD curve
e. equilibrium GDP and the price level to fall
E
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If a firm can increase its sales only by lowering its price, then
A) the firm is a price searcher. B) the firm's marginal revenue will be less than price. C) the demand curve for the firm's product is negatively sloped. D) all of the above are true.
A record of all transactions between residents of the reporting country and residents of the rest of the world over a period of time is called the:
A) national income product accounts. B) balance of payments accounting system. C) accrual accounting system. D) none of the above.