A fiscal policy designed for maximum stimulus of economic growth must discourage current ________ and thus makes for, at least in the short run, a ________ even income distribution
A) consumption, less
B) consumption, more
C) private saving, less
D) private saving, more
A
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When the value of money is on the vertical axis, the money supply curve is vertical and shifts right if the Federal Reserve buys bonds
a. True b. False Indicate whether the statement is true or false
If the price of gasoline has increased from $2 per gallon to $4 per gallon at the same time that the overall price index increased from 200 to 250, then you know that the inflation adjusted price of gasoline has
A. decreased. B. increased. C. remained constant.
If output growth exceeds population growth for a country, then:
A.) Average living standards will increase. B.) GDP must have grown at a very rapid rate. C.) Per capita GDP will decrease. D.) This country must have overcome the problem of scarcity.
The following list contains items that are related to aggregate demand and/or aggregate supply.1)Government Spending 2)Consumer Expectations 3)Degree of Excess capacity 4)Personal Income Tax Rates 5)Productivity 6)National Income Abroad 7)Business Taxes 8)Domestic Resource Availability 9)Price of Imported Products 10)Profit Expectations on Investments Refer to the above list. Changes in which of the above two factors would most likely cause a change in aggregate supply?
A. 1 and 5 B. 8 and 9 C. 5 and 7 D. 3 and 10