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17 Cards in this Set
- Front
- Back
Which of the following statements is correct?
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The lower the price level, the greater the quantity of real GDP demanded
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The aggregate supply curve illustrates that the
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higher the price level, the greater the quantity of real GDP supplied.
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According to the AS-AD model
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the equilibrium is where the SRAS curve crosses the AD curve but the amount of real GDP at this point is not always equal to potential GDP.
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An increase in government expenditures on goods and services leads to the
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aggregate demand curve shifting rightward.
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f people's expectations about future income improve so they think their future income will be higher than previously believed, then the AD curve
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will shift rightward because people will increase spending now.
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The long-run aggregate supply curve illustrates
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a country's potental real GDP.
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A rise in the price level
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decreases the quantity of real GDP demanded.
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Which of the following would not cause an increase the LRAS?
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a decrease in the labor force
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If government expenditure on goods and services increases by $20 billion, then aggregate demand function
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increases by more than $20 billion.
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The national debt is
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the sum of past budget deficits minus the sum of past budget surpluses.
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A tax policy where tax rates decrease when income increases is called
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regressive taxation.
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A tax policy where tax rates increase when income increases is called
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progressive taxation.
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If the federal government has a budget deficit, then it is definitely the case that
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government outlays exceed revenues.
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The gross national debt is
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the sum of debt owed to entities outside of the federal government and intra-governmental holdings.
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According to the Laffer Curve,
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decreasing tax rates may or may not cause tax revenue to decrease.
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All of the following could be automatic stabalizers except
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a tax increase to reduce the deficit.
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A tax policy where tax rates stay the same when income increases is called
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flat taxation |