Refer to the graph shown. Expansionary fiscal policy is most likely to shift the aggregate demand curve from:
A. AD0 to AD2 if crowding out does not occur and from AD0 to AD3 if crowding out does occur.
B. AD2 to AD0 if crowding out does not occur and from AD1 to AD3 if crowding out does occur.
C. AD0 to AD2 if crowding out does not occur and from AD0 to AD1 if crowding out does occur.
D. AD2 to AD0 if crowding out does not occur and from AD1 to AD2 if crowding out does occur.
Answer: C
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Refer to Table 4-11. The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick. The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units. What is the value of producer surplus?
A) $100 thousand B) $200 thousand C) $600 thousand D) $800 thousand
If there is a decrease in foreign demand for U.S. goods due to a recession in Europe
A) the U.S. aggregate demand will shift right. B) the U.S. aggregate demand will shift left. C) the U.S. aggregate demand will not be affected. D) the U.S. aggregate demand will become steeper.
In the long run, if the Fed increases the growth rate of the money supply,
a. inflation will be higher. b. unemployment will be lower. c. real GDP will be higher. d. All of the above are correct.
Refer to the table below. An output level of 15 units, this firm's accounting profit is ________, and its economic profit is ________.QuantityTotal RevenueExplicit CostsImplicit Costs1050365157563620100937251251258301501619
A. $12; $6. B. $6; $63. C. $63; $6 D. $6; $12