1
In the short run, aggregate demand in a country will increase if there is an increase in the:
If income and consumption in the U.S. economy are growing faster than in the economies of the nations that are its major trading partners, U.S. imports are most likely to:
Increase more than US exports.
Which of the following would most likely result if the federal government increased spending with-out increasing tax revenues during a period of full employment?
Increase in Price level
Which of the following actions by a nation's central bank would be most effective in reducing inflation?
selling government securities on the open market
Which of the following best explains why a $7 billion tax cut can lead to a $9 billion increase in consumer spending in the short run?
Tax cuts increase disposable income, which leads to higher national income and additional consumer spending
Which of the following is most important in increasing a nation's economic growth in the long run?
Higher rates of technological change.