Answer the following questions true (T) or false (F)
1. Long lags associated with the legislative process in implementing fiscal policy make it more difficult to use than monetary policy.
2. The budget deficit increases during wars and recessions.
3. Increasing the federal budget deficit will contribute to increasing the federal government debt.
1. TRUE
2. TRUE
3. TRUE
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When the aggregate demand curve and the short-run aggregate supply curve intersect
A) the long-run aggregate supply curve must also intersect at the same point. B) structural and frictional unemployment equal zero. C) inflation must be increasing. D) the economy is in short-run macroeconomic equilibrium.
The equilibrating force in the credit market in the classical model is
A) the interest rate. B) the price level. C) full employment. D) fiscal policy.
What is the total welfare from trade as shown in Exhibit 2?
a. + a
b. + d
c. a + b + c + e + f
d. a + b + c + d + e + f
One of the main arguments against further growth for industrialized nations focuses on the problem og:
What will be an ideal response?