According to the AD-AS diagram, short-term, an anti-inflation policy creates:
A. lower inflation.
B. higher unemployment.
C. higher output.
D. higher inflation.
Answer: B
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The "New Deal" measures introduced in 1933 and 1934 to end the depression
(a) brought about almost complete recovery by the mid-1930s. (b) were not completely successful in ending the Depression, which lasted until the beginning of World War II. (c) actually interfered with recovery, and the Depression worsened in the mid-1930s. (d) were not very successful at first but finally ended the Depression by the late 1930s.
If we subtract the number of persons not in the labor force from the civilian noninstitutional population, we get the number of people in the
A) ranks of the unemployed. B) civilian labor force. C) ranks of the employed. D) ranks of discouraged workers. E) none of the above
One of the initial problems facing the newly elected President Clinton was a large budget deficit.
Answer the following statement true (T) or false (F)
If the government wished to shift aggregate demand to the left, it might:
A. decrease military spending. B. decrease corporate income taxes. C. increase the amount of educational grants available. D. All of these would cause a decrease in aggregate demand.