Expansionary fiscal policy can cause a rise in real GDP in combination with
a. an increase in the price level.
b. a decrease in the price level.
c. no change in the price level.
d. a decrease in the price level if the aggregate supply curve is upward sloping.
a
You might also like to view...
Economists use the phrase, "dollar bills left on the sidewalk" for describing systematically missed opportunities
Indicate whether the statement is true or false
In some developing countries, labor productivity has remained stagnant or fallen because
a. the capital stock has grown at about the same rate or more slowly than the population b. the capital stock has grown faster than the population c. the population has decreased d. foreign labor has been utilized e. wages have dropped
When earnings differentials are adjusted for such factors as age, education, and marital status, the
a. corrected earnings of minority males are greater than those of similar white men. b. differential between the earnings of white males and those of minority males decreases. c. differential between the earnings of white males and those of minority males increases. d. corrected earnings of minority males are equal to those of similar white men.
The theory of rational expectations concludes that
A. discretionary policies are more effective than rules in stabilizing the economy. B. discretionary fiscal policy is a more powerful stabilization device than is discretionary monetary policy. C. discretionary monetary policy is a more powerful stabilization device than is discretionary fiscal policy. D. since expectations can leave discretionary stabilization policies ineffective, it is better to rely upon policy rules.