If the government wants to engage in fiscal policy to increase real GDP, it could
a) increase government expenditure in order to increase short-run aggregate supply
b) decrease government expenditure in order to increase short-run aggregate supply
c) increase government expenditure in order to increase aggregate demand
d) decrease government expenditure in order to decrease aggregate demand
c) increase government expenditure in order to increase aggregate demand
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The European Union is the oldest, largest, and most ambitious integration agreement in the world today
Indicate whether the statement is true or false
It costs a firm $80 per unit to produce product A and $50 per unit to produce B individually. If the firm can produce both products together at $140 per unit of product A and B, this exhibits signs of
a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
A nation is said to have _____ in the production of a good if it can produce it at a lower cost than another nation
a. a comparative advantage b. an absolute advantage c. economies of scale d. production efficiency
The demand for the Franconian franc in the foreign exchange market equals 14,000 - 3,000e and the supply of francs in the foreign exchange market equals 2,000 + 2,000e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 3 U.S. dollars per franc, then to maintain this fixed rate Franconia's international reserves must:
A. decrease by 3,000 dollars per period B. decrease by 9,000 dollars per period C. increase by 3,000 dollars per period D. increase by 9,000 dollars per period