Assume that the government decides to use fiscal or monetary policy to stimulate the economy and that this action comes as a surprise to most individuals and businesses. In the short run, the result will be
A) an increase in aggregate demand and a fall in the price level.
B) a decrease in aggregated demand and a rise in the price level.
C) a decrease in the average duration of unemployment and a decrease in the unemployment rate.
D) an increase in the average duration of unemployment and an increase in the unemployment rate.
C
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Showing up to a job interview and not knowing any information about the company is an example of a:
A. positive signal. B. negative signal. C. positive screen. D. negative screen.
We define net exports to be:
A. exports minus imports. B. imports minus exports. C. imports divided by exports. D. imports plus exports.
When supply is perfectly elastic, the value of the price elasticity of supply is
a. 0. b. 1. c. greater than 0 and less than 1. d. infinity.
Other things equal, high interest rates increase the government deficit because of higher government interest payments.
Answer the following statement true (T) or false (F)