When fiscal policy makers wish to reduce aggregate demand, they could enact:
A. contractionary fiscal policy.
B. expansionary fiscal policy.
C. contractionary monetary policy.
D. expansionary monetary policy.
A. contractionary fiscal policy.
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Foreign exchange rates are
A. price at which purchases and sales of foreign goods take place. B. movement of goods and services from one country to another. C. the price of one currency in terms of a second currency. D. differences between exports and imports.
The most profitable output level can be found by looking at which two curves?
a. P and MR. b. MR and MC. c. MC and TC. d. P and AVC. e. AVC and ATC.
Refer to the graph shown. Suppose the economy is initially at A but then the Fed adopts an expansionary monetary policy. The initial effect of this policy will be pressure to move the economy to:
A. E. B. B. C. C. D. D.
Refer to Scenario 3.3 below to answer the question(s) that follow.SCENARIO 3.3: -Mustard and mayonnaise are substitutes. -Mustard and relish are complements. -Mustard is a normal good. -During the summer, about 50% of all mustard was recalled by manufacturers and removed from store shelves.Refer to Scenario 3.3. The government wants to protect consumers from rising food prices. Therefore, price restrictions are imposed on mustard producers, prohibiting them from raising the price of mustard. This will cause
A. an excess supply of mustard. B. an excess demand for mustard. C. a decrease in the supply of mustard. D. an increase in the demand for mustard.