In the long run,

Select one:

a.a larger budget surplus means a smaller capital stock

b.a larger budget deficit means lower consumption spending

c.lower investment spending means slower growth of the standard of living

d.government spending has no effect on the budget deficit or surplus

e.a larger budget deficit means a larger money supply

Which of the following changes would probablynotlead to an increase in aggregate expenditure?

Select one:

a.an increased mood of optimism about the nation's economic prospects

b.a decrease in the income tax rate

c.an increase in the value of corporate stocks

d.an increase in the interest rate

e.an increase in aggregate wage income

In the short run, an increase in real GDP will

Select one:

a.have no effect on unit costs or the price level

b.decrease unit costs and increase the price level

c.decrease unit costs and decrease the price level

d.increase unit costs and decrease the price level

e.increase unit costs and increase the price level

In the aggregate demand-aggregate supply model, an increase in the price level will

Select one:

a.decrease the money supply, raise the interest rate, reduce aggregate expenditure, and decrease real GDP

b.decrease money demand, lower the interest rate, increase aggregate expenditure, and increase real GDP

c.not change money supply, money demand or the interest rate, but will shift the aggregate demand curve to the right

d.increase money demand, raise the interest rate, reduce aggregate expenditure, and decrease equilibrium real GDP

e.increase the money supply, lower the interest rate, increase aggregate expenditure, and increase real GDP

If labor supply decreases, what will happen to the real wage rate, employment, and real output, assuming no change in labor demand?

Select one:

a.The real wage will increase, employment will decrease, and real output will decrease.

b.The real wage will increase, employment will increase, and real output will increase.

c.The real wage will decrease, employment will decrease, and real output will increase.

d.The real wage will increase, employment will decrease, and real output will increase.

e.The real wage will decrease, employment will increase, and real output will increase.

What is the difference between nominal and real GDP?

Select one:

a.Nominal GDP is adjusted for depreciation; real GDP is not.

b.Nominal GDP is adjusted for changes in the price level; real GDP is not.

c.Real GDP is adjusted for depreciation; nominal GDP is not.

d.Real GDP is adjusted for changes in the price level; nominal GDP is not.

e.Real GDP is adjusted for taxes and transfer payments; nominal GDP is not.