Fiscal policy moved toward expansion during the 1980s but toward restriction during the 1990s. How did these differences affect the economy?
a. The expansionary fiscal policy of the 1980s led to strong growth while the restrictive policy of the 1990s led to stagnation.
b. The expansionary fiscal policy of the 1980s led to weaker growth than the restrictive policy of the 1990s.
c. The expansionary fiscal policy of the 1980s generated more rapid growth than the restrictive policy of the 1990s.
d. There is little evidence that the differences in fiscal policy between the two decades exerted much impact on either aggregate demand or real output.
D
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Use the figure below to answer the following question.
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A. b. B. c. C. c + b + d. D. b + c.
If the U.S. dollar depreciates, it becomes cheaper for U.S. residents to travel in foreign countries
a. True b. False
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Suppose there are two firms in a market: firm A and firm B. Further, assume that they produce a homogenous product at a constant marginal cost of $10. In the Bertrand model solution, firm A will charge a price
A. smaller than firm B. B. greater than $10. C. greater than firm B. D. equal to $10.