If the government wants to engage in fiscal policy to increase real GDP, it could...
What will be an ideal response?
increase government purchases in order to increase aggregate demand
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A perfectly competitive firm does not try to sell more of its product by lowering its price below the market price because
A. its competitors would not permit it. B. its demand curve is inelastic, so total revenue will decline. C. this would be considered unethical price chiseling. D. it can sell all it wants to at the market price.
When the total quantity of unsold new Chevrolets increases from 50,000 to 75,000
Tuesday also turns out to be the busiest day for ___________ ticket sales and the __________ of the workweek.
Fill in the blank(s) with the appropriate word(s).
Which of the following explains why RGDP demanded increases when the price level falls?
a. the subsequent increase in exports due to increased production b. the corresponding increases in interest rates, which promotes more saving c. the subsequent decrease in imports due to increased purchasing power d. the corresponding increase in the real value of households’ money holdings