Increasing aggregate demand with fiscal policy may have undesirable inflationary consequences
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to the scenario above. If both economies have identical depreciation rate, then:
A) economy A's steady state equilibrium will lie to the left and above economy B's steady state equilibrium. B) economy A's steady state equilibrium will lie to the right and below economy B's steady state equilibrium. C) economy A's steady state equilibrium will lie to the left and below economy B's steady state equilibrium. D) economy A's steady state equilibrium will lie to the right and above economy B's steady state equilibrium.
The fact that individuals substitute away from a taxed activity creates _____
a. the excess burden of taxation b. the welfare cost of taxation c. deadweight loss of taxation d. all of the above e. a and b
Which of the following is an example of a stock variable?
a. The amount of cereal in a person's pantry b. The amount of cereal a person buys each week c. The amount of cereal a child consumes each month d. The amount of cereal produced each day e. None of these are stock variables
In the 1970s and 1980s our productivity
A. increased at an increasing rate. B. Increased at a decreasing rate. C. Stayed about the same. D. decreased.