Which of the following is the order of fastest to slowest acting policy, once enacted, in affecting aggregate demand?
A. Taxes, money, government spending
B. Taxes, government spending, money
C. Government spending, taxes, money
D. Government spending, money, taxes
Answer: C
You might also like to view...
Which of the following conditions holds in an economically efficient competitive market equilibrium?
A) Producer and consumer surplus are exactly equal in size. B) There are no positive and no negative external effects from consumption and production. C) The deadweight loss is positive but at a minimum. D) The marginal benefit of the last unit produced and consumed is maximized.
Suppose you drink more tea because the price of coffee has increased. Which of the following best explains your action?
a. the law of supply b. tea and coffee are complements c. the substitution effect d. the income effect e. your nominal income has increased
Improved training of employees would:
a) Shift aggregate supply outwards at each price b) Shift aggregate supply inwards at each price c) Shift aggregate demand outwards at each price d) Shift aggregate demand inwards at each price
The maximum price reduces total surplus of the market because it prevents some mutually beneficial transactions.
Answer the following statement true (T) or false (F)