With an upward-sloping AS curve, a decrease in transfer payments can lead to a decrease in inflation.
Answer the following statement true (T) or false (F)
True
The fiscal policies available to the federal government for decreasing aggregate demand are to decrease government spending, increase taxes, or decrease transfer payments. Fiscal restraint will decrease aggregate demand, which will decrease equilibrium GDP and inflation.
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Referring to Figure 19.2, the effect of a decrease in U.S. interest rates is represented by a movement from point
A) b to c. B) c to d. C) d to a. D) c to b.
During a recession,
A) real GDP is less than potential GDP. B) real GDP is equal to potential GDP. C) the actual unemployment rate is less than the natural unemployment rate. D) real GDP is greater than potential GDP. E) the relationship between real GDP and potential GDP no longer exists.
Although the United States is the second largest exporting country, international trade is less important to the United States than it is to most other countries
Indicate whether the statement is true or false
Groups of nations that grants members trade privileges are called
A) local trade protectionists. B) trade settlements. C) regional trade blocs. D) allies.