Typical goals for fiscal policy are
A) running high deficits and raising consumer prices.
B) high prices for consumers and low prices for businesses.
C) high employment and price stability.
D) increasing the money supply so the government can spend more.
C
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Which of the following actions should be discussed with an attorney before undertaking as the action could be considered legal?
A) an agreement with a competitor firm not to bid on a contract B) an agreement with a competitor firm to set prices C) an exclusive dealings contract with a customer D) an agreement with a competitor firm submit a low bid on a contract
The pessimistic view of the shape of the Environmental Kuznets Curve is
a. linear from the origin b. an inverted-U shape that flattens out after some critical income level c. a perfectly symmetric inverted-U shape d. a flattened U-shape
Economic models can help us understand reality only when they include all details of the economy
a. True b. False Indicate whether the statement is true or false