Government policy to reduce unemployment and increase national output can be illustrated by an
a. outward shift of the aggregate demand curve caused by an increase in government spending.
b. outward shift of the aggregate supply curve caused by a reduction in government spending.
c. inward shift of the aggregate demand curve caused by an increase in government spending.
d. inward shift of the aggregate supply curve caused by a reduction in government spending.
a
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Assume there is an increase in the price of electricity (which is the result of a decrease in the supply of electricity), and electricity and natural gas are substitutes
How would this affect the demand for natural gas, and what would happen to the equilibrium price and quantity of natural gas?
Lower taxes on businesses will shift the aggregate:
a. demand curve rightward. b. demand curve leftward. c. supply curve rightward. d. supply curve leftward.
Most of the world's economies are mixed economies because _________
a. a cartel of powerful transnational firms demands it. b. the market system of allocation is always best. c. the command system of allocation is always best. d. government intervention in an overall market system exists because markets fail when there is market power, a great deal of inequality, pollution externalities, or public goods.
The difference between the ________ and the ________ from the sale of a product is called producer surplus
A) lowest price a firm would have been willing to accept; price it actually receives B) highest price a firm would have been willing to accept; lowest price it was willing to accept C) cost to produce a product; price a firm actually receives D) cost to produce a product; profit received