When the AD curve is relatively flat
A. only monetary policy can be used to increase output.
B. only fiscal policy can be used to increase output.
C. both fiscal policy and monetary policy can be used to increase output.
D. neither fiscal policy nor monetary policy can be used to increase output.
Answer: C
You might also like to view...
In 2002, President Bush imposed a tariff on imported steel. He did so in response to rent seeking by
A) domestic steel consumers. B) domestic steel producers. C) foreign steel consumers. D) foreign steel producers. E) foreign politicians.
What two growth rates comprise of the growth rate of potential GDP?
A. Capital gains and investment B. Money and prices C. Labor input and hours worked D. Government spending and net exports
The manager of an ice-cream parlor decides to introduce a new ice-cream flavor in his Dallas, TX based restaurants to compare the sales of these restaurants to the ones with no new flavors. She decides to run a difference in difference approach. Which of the following is true?
a. The first difference would be the difference in the sales of the Dallas stores before and after the introduction b. The second difference would be the difference in the sales in other stores before and after the Dallas stores introduced the new flavor c. The second difference would be the difference between the post introduction sales in the Dallas stores and the control group d. Only A&B
State and local governments generate revenue from all of the following sources except
a. sales taxes. b. the federal government. c. corporate income taxes. d. customs duties.