Starting from a situation of full employment, an increase in aggregate demand creates ________ and ________ the price level
A) an inflationary gap; raises
B) a recessionary gap; lowers
C) a recessionary gap; raises
D) a recessionary gap; does not change
E) an inflationary gap; lowers
A
Economics
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Which of the following is true if the international price of coffee increases?
a. The demand for tea, a substitute good, will decrease. b. The demand for coffee will increase. c. The demand for coffee and tea will decrease. d. Both the demand for coffee and tea will increase. e. The demand for tea, a substitute good, will increase.
Economics
The government raises revenue through taxation to pay for the services it provides
a. True b. False Indicate whether the statement is true or false
Economics