A $100 increase in both government expenditure and taxes will
a. cancel each other out so that the equilibrium level of output will remain unchanged
b. lead to a $100 decrease in the equilibrium level of output
c. lead to a $100 increase in the equilibrium level of output
d. lead to a greater than $100 increase in the equilibrium level of output
e. lead to a less than $100 increase in the equilibrium level of output
C
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All else constant, an increase in the supply of
A) increases the equilibrium quantity and the equilibrium price of bonds. B) increases the equilibrium quantity and decreases the equilibrium price of bonds. C) decreases the equilibrium quantity and increases the equilibrium price of bonds. D) decreases the equilibrium quantity and the equilibrium price of bonds.
Which of the following assumptions indicates that there is no trade-off between inflation and unemployment?
A) A vertical aggregate demand curve B) A vertical Phillips Curve C) Constant velocity D) Constant money supply growth rate