From an initial long-run equilibrium, if aggregate demand grows faster than long-run and short-run aggregate supply, then Congress and the president would most likely
A) decrease tax rates. B) decrease government spending.
C) decrease the required reserve ratio. D) decrease oil prices.
B
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The working-age population is defined as the number of
A) people over the age of 16 who are not in jail, hospital, or other institution. B) people who have a job. C) people working full-time jobs who are over the age of 16. D) people looking for work.
If you sell a $100,000 interest-rate futures contract for 110, and the price of the Treasury securities on the expiration date is 106, your ________ is ________
A) profit; $4000 B) loss; $4000 C) profit; $6000 D) loss; $6000
Which of the following is a difference between a corrective tax and a corrective subsidy?
a. A corrective tax leads a market to allocative efficiency, while a corrective subsidy does not lead to allocative efficiency. b. A corrective tax eliminates deadweight loss, while a corrective subsidy does not eliminate deadweight loss. c. A corrective tax is useful in the case of negative externalities, while a corrective subsidy is useful in the case of positive externalities. d. A corrective tax operates by decreasing the private cost of production, while a corrective subsidy operates by decreasing the private benefit of consumption.
A production point is said to be efficient if there is no way for the economy to produce more of one good without producing less of another
a. True b. False Indicate whether the statement is true or false