?Beginning from full-employment macro equilibrium, increase in government spending will cause real GDP to:
A. ?increase in the short run.
B. ?decline in the long run.
C. ?decline in the short run.
D. ? increase in the long run.
Answer: A
Economics
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A binding price ceiling is designed to:
a. increase efficiency. b. raise the price above the equilibrium price. c. keep the price below the equilibrium price. d. generate a surplus
Economics
Suppose the interest rate is 8 percent. Consider three payment options: 1 . $200 today. 2 . $220 one year from today. 3 . $240 two years from today. Which of the following is correct?
a. Option 1 has the highest present value and Option 2 has the lowest. b. Option 2 has the highest present value and Option 3 has the lowest. c. Option 3 has the highest present value and Option 1 has the lowest. d. None of the above is correct.
Economics