Which of the following is false?
A) Economists who believe that the AS curve is vertical assert that changes in Real GDP originate only on the supply side of the economy.
B) Economists who believe that the AS curve is upward-sloping assert that changes in Real GDP originate only on the supply side of the economy.
C) For economists who believe that the AS curve is upward-sloping, government policy that aims to impact either side of the economy (supply or demand) will change both prices and Real GDP.
D) Compared to the economists who believe that the AS curve is upward-sloping, the economists who believe that the AS curve is upward-sloping assert that the government has fewer tools with which to change Real GDP.
B
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A unit tax of $1 has been levied on a good. The equilibrium price of the good will most likely
A) increase by $1. B) remain unchanged. C) decrease by $1. D) increase by an amount less than $1.
Why is it more difficult for the Fed to control the money supply today than it was fifty years ago?
What will be an ideal response?