A goal of monetary policy and fiscal policy is to
a. offset the shifts in aggregate demand and thereby eliminate unemployment.
b. offset shifts in aggregate demand and thereby stabilize the economy.
c. enhance the shifts in aggregate demand and thereby create fluctuations in output and employment.
d. enhance the shifts in aggregate demand and thereby increase economic growth
b
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A possible outcome of the multilateral approach to free trade is that such an approach can
a. win political support when a unilateral approach cannot. b. result in more restricted trade than under a unilateral approach, when international negotiations fail. c. result in drastic reductions in tariffs for many countries. d. All of the above are correct.
Which of the following is always associated with monopolistic competition?
A. identical products B. economic profits in the short run C. product differentiation D. Demand curves become more inelastic as new entry occurs.
Which of the following statements is not? true?
What will be an ideal response?
The world has had a freely floating exchange rate system since
A. 1933. B. 1946. C. 1964. D. 1973.