Fiscal policy works mainly by shifting the ______ curve.
A. aggregate demand
B. aggregate supply
C. supply
D. government supply
A. aggregate demand
You might also like to view...
A bank has $400 in checkable deposits, $800 in savings deposits, $700 in time deposits, $900 in loans to businesses, $300 in outstanding credit card balances,
$500 in government securities, $10 in currency in its vault, and $20 in deposits at the Fed. The bank's deposits that are part of M1 are equal to A) $1,900. B) $400. C) $1,210. D) $530. E) $410.
A household's quantity of money demanded is defined as
a. the amount of income that the household chooses to hold in the form of money, at each possible interest rate b. the amount of wealth that the household chooses to hold as money, rather than as other assets c. the household's desire to have greater financial wealth d. the percentage of each dollar of income that the household wishes to spend e. the total amount the household decides to hold in cash, bonds, and other assets, at each possible interest rate
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired. The firm is able to produce 181 units of output per day when 16 workers are hired, holding other inputs fixed. The marginal product of the 16th worker is
a. 10 units of output. b. 11 units of output. c. 16 units of output. d. 181 units of output.