A change in government spending can close an expansionary gap by shifting the short-run aggregate supply curve
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
"Developing countries should delay opening the capital account until the domestic financial system is strong enough to withstand the sometimes violent ebb and flow of world capital." Discuss
What will be an ideal response?
Which of the following is a correct statement about unions in the United States?
A) The trend away from manufacturing and the deregulation of certain industries has promoted unionization of the U.S. workforce. B) Half of the top ten U.S. unions now have members who work in service and government occupations. C) Since the 1960s, there has been a gradual increase in the proportion of U.S. workers who are members of unions. D) Half of all U.S. workers are union members.
The shape of an experience curve suggests that
A) specialization does not matter. B) learning does not pay. C) experience can lower costs. D) none of these choices.
When the money supply is expanding and prices rise rapidly, economic growth
a. is slowed by the resulting unpredictability of the future level of prices. b. is enhanced as economic activity grows more rapidly. c. is enhanced because profits are higher so that capital investment is greater. d. is enhanced because existing debt is reduced in value, so people are willing to buy more goods.