One News Wire article in the text has the title "Fed Cuts Key Interest Rate Half-Point to 1 Percent." Assuming the economy is in the upward sloping portion of the eclectic aggregate supply curve, what should happen to the price level and output as a result of the Fed's action, ceteris paribus?
A. The equilibrium price level and equilibrium output should both increase.
B. The equilibrium price level should increase and equilibrium output should decrease.
C. The equilibrium price level should decrease and equilibrium output should increase.
D. The equilibrium price level and equilibrium output should both decrease.
A. The equilibrium price level and equilibrium output should both increase.
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Dina drives to work on Interstate 294 at 90 MPH, well in excess of the 65 MPH speed limit. Sandy is behind her, going 85 MPH. A state trooper pulls Dina over and gives her a speeding ticket. Sandy continues driving. If Dina had not been speeding, the trooper would have ticketed Sandy. In terms of externalities, this story shows that
a. the 10 MPH difference defines the difference bewteen a negative and positive externality b. Sandy enjoys a positive externality c. Dina suffers a negative externality d. Dina's driving habits created a negative externality for Sandy e. Sandy's driving habits created a negative externality for Dina
Consumer spending accounts for about 70 percent of GDP
a. True b. False Indicate whether the statement is true or false