In the short-run macro model, firms that sell more than they produce will respond by
a. reducing output
b. increasing output
c. reducing prices
d. raising prices
e. not changing production because the market will adjust on its own
B
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Which of the following statements is true of a barter system? a. In a barter system, an individual offers one good or service to get another good or service. b. In a barter system, an individual offers money to get a good or service
c. In a barter system, an individual offers a good or service to get money. d. In a barter system, different kinds of money are exchanged for one another. e. In a barter system, all individuals are self-sufficient.
Higher taxes affect real GDP indirectly through both the consumption channel and the output supply channel
a. True b. False Indicate whether the statement is true or false