To increase output the government could adopt policies that
A. increase aggregate supply and decrease aggregate demand.
B. increase aggregate supply and aggregate demand.
C. decrease aggregate supply and increase aggregate demand.
D. decrease aggregate supply and aggregate demand.
Answer: B
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In the United States, the poorest 20 percent of households earn roughly ________ percent of total income
A) 20 B) 0.5 C) 15 D) 3 E) 10
Which of the following is most likely to be preferred by economists as a relatively more efficient measure to reduce pollution?
a. Marketable permits b. A command-and-control regulation c. Corrective subsidies d. Pollution charges
The Coase theorem states that
a. under certain circumstances government intervention is not needed to reach efficient outcomes when an externality is present. b. government intervention is always required to reach an efficient outcome when an externality is present. c. government intervention cannot lead to an efficient outcome when an externality is present. d. only negative externalities can be resolved using government intervention.
An increase in the supply of money will lead to ____ in equilibrium real GDP and ____ in equilibrium price level.
A. an increase; an increase B. an increase; a decrease C. a decreases; an increase D. a decrease; a decrease