What would happen if employment is continually above or below its full-employment level?
a. the aggregate demand curve would shift to move the economy back to full employment.
b. the economy's self-correcting mechanism would move the economy back to full employment.
c. the aggregate supply curve would become horizontal.
d. the aggregate supply curve would become steeper.
e. the economy's self-correcting mechanism would break down.
B
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The low interest rates that prevailed after 1942 made World War II (1941–45) financing problems fundamentally the same as World War I (1914–18)
Indicate whether the statement is true or false
A bond and stock differ in that a stock is an IOU for a fixed amount and a bond is a portion of ownership
a. True b. False Indicate whether the statement is true or false
Which of the following policies would be most effective in the steep part of the SRAS demand curve?
a. The interest rate increases by 5 percent. b. The interest rate increases by 12 percent. c. The interest rate decreases by 5 percent. d. The interest rate decreases by 12 percent.
Which of the following statements is true?
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