If the long-run equilibrium of an economy is disrupted by an unexpected shift to a more expansionary monetary policy, the policy shift will
a. reduce aggregate demand and real output in the short run.
b. lead to a higher rate of unemployment in the short run.
c. stimulate real output in the short run, but in the long run, its primary impact will be on the general level of prices.
d. lead to an increase in the general level of prices in the short run, but in the long run, its primary impact will be an expansion in real output.
C
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Which of the following statements is true?
a. The most important source of revenue to the federal government is personal income taxes. b. The most important source of revenue to state governments are sales and property taxes. c. The most important source of revenue to local governments are local property taxes. d. The taxation burden, measured by taxes as a percentage of GDP, is lighter in the United States than in most other advanced industrial countries. e. All of these.
________ can trigger a recession
A) A decrease in autonomous expenditure B) An increase in autonomous expenditure C) An increase in induced expenditure D) Equality between aggregate expenditure and real GDP E) An increase in the expenditure multiplier