As a response to the 2008 recession, the U.S. government employed expansionary policy, and the economy returned to its level of potential output.
Answer the following statement true (T) or false (F)
False
While the government carried out expansionary policy, the economy did not move out to its level of potential output as expected. This has led some economists to favor more spending and others to address a different type of solution.
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Refer to Figure 9.6. Before this policy was implemented, producer surplus was
A) $10. B) $2000. C) $4000. D) $6000. E) $12000.
Social Security payments were not indexed to adjust for inflation until:
A. 1940. B. 1968. C. 1975. D. 1990.
Suppose prices for new homes have risen and sales of new homes have also risen. We can conclude that
a. the demand for new homes has risen. b. the law of demand has been violated. c. new firms have entered the construction industry. d. construction firms must be facing higher costs.
We assume that in the short run in a perfectly competitive market the:
A. price is fixed. B. number of firms is fixed. C. total quantity supplied is fixed. D. All of these are true of the short run.