If the economy is growing beyond potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) the money supply and a decrease in interest rates.
B) taxes.
C) oil prices.
D) government purchases.
B
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Slope will vary along a curve (as opposed to a straight line)
a. True b. False Indicate whether the statement is true or false
Which of the following would most likely serve as an example of a monopoly?
a. a restaurant in a large city b. a dry cleaners in a large city c. a local gas station d. a local electrical company
Holding the real money supply constant, an increase in real money demand will reduce interest rates
Indicate whether the statement is true or false
The efficiency of market organization is dependent on which of the following?
a. well-regulated supply and demand b. the availability of low cost resources and high tariffs on foreign imports c. competitive markets and well-defined and enforced private property rights d. Government establishment of the invisible hand principle and the inelasticity of certain goods.