"Expansionary fiscal policy is always 100 percent effective when the short-run aggregate supply curve is horizontal." Is this statement TRUE?
A. no, because crowding out could take place
B. no, because the increased spending may cause the price level to increase
C. yes, because theoretically nothing else can offset the effects of fiscal policy
D. yes, when the long-run aggregate supply curve is horizontal too
Answer: A
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What will cause the equilibrium point to move from E1 to E2?
a. a downward movement, or decrease, in price from P1 to P2
b. an upward movement, or increase, in price from P2 to P1
c. a leftward movement, or decrease, in quantity from Q2 to 0
d. a rightward movement, or increase, in quantity from Q2 to Q1
Which is an example of a nontariff barrier (NTB)?
A. An export subsidy. B. An excise tax on the physical volume of imported goods. C. Box-by-box inspection requirements for imported fruit. D. An excise tax on the dollar value of imported goods.
Which of the following would cause both an increase in the price level and an increase in real output?
A. An increase in transfer payments. B. A tax hike. C. A decrease in government spending. D. A decrease in production costs.
Recall the Application about the manufacture of fake killer whales used to scare sea lions off the Washington coast to answer the following question(s).Recall the Application. What is the indivisible input and what are its implications for economies or diseconomies of scale?
What will be an ideal response?