Economics Questions?

Posted on 2014-12-09 06:51:00 in Economics by ADAM

1. As the price level decreases, other things being equal,

a. aggregate demand increases
b. the quantity of rGDP demanded increases
c. the quantity of rGDP demanded decreases
d. rGDP supplied increases
e. both a and e occur

2. An increase in taxes will do which of the following in the long run?

a. increase unemployment
b. decrease real output
c. decrease the price level
d. none of the above

3. Expansionary fiscal policy will result in a ____ price level and ____ unemployment in the short run.

a. higher, higher
b. lower, higher
c. lower, lower
d. higher, lower

4. A cartel is:

a. an industry trade group formed to lobby political leaders
b. a regulated industry manufacturers association that is officially permitted to set the price of its product above long-run average total cost
c. a group of oligopolists who try to behave like a single monopolist and split the benefits among themselves
d. a government-approved organization for the exchange of technical information among firms

5. A profit-maximizing monopolist operates where demand is:

a. inelastic
b. unit elastic
c. elastic
d. infinitely elastic
e. none of the above

6. Which of the following increases U.S. aggregate demand?

a. a lower price level, increasing citizen's real wealth
b. a lower price level, increasing exports and decreasing imports
c. an increase in American's expected future incomes
d. a lower price level, reducing interest rates
e. all of the above

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