What happens if a government uses an expansionary fiscal policy to increase GDP?
a. The aggregate supply curve will shift to the right.
b. The aggregate supply curve will shift to the left.
c. The aggregate demand curve will shift to the left.
d. The aggregate demand curve will shift to the right.
d. The aggregate demand curve will shift to the right.
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Jessica traded her string cheese for Jamie's apple the other day at lunch. Who was made better off?
A. Both Jessica and Jamie B. Jessica C. Neither Jessica nor Jamie D. Jamie
In the fooling model, real wages
A) are countercyclical. B) are procyclical. C) are constant. D) show no clear cyclical pattern.
In the AS/AD model, higher interest rates are produced by:
A. an expansionary monetary policy. B. a steady-as-you-go monetary policy. C. a contractionary monetary policy. D. an activist monetary policy.
Behavioral economists recommend mechanisms to help people actually do things they say they want to do but often don't. Such mechanisms are often called
A. commitment devices. B. self-control. C. savings rates. D. charitable donations.