If the investment demand curve is vertical,
A) both monetary and fiscal policy are ineffective.
B) both monetary and fiscal policy are effective.
C) monetary policy is effective, but fiscal policy is ineffective.
D) monetary policy is ineffective, but fiscal policy is effective
Answer: D) monetary policy is ineffective, but fiscal policy is effective
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Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 2015 and $22 in 2016. If 2015 is the base year, Peg's contribution to nominal GDP in 2015 was ________ and to real GDP in 2015 was ________.
A. $80,000; $80,000 B. $80,000; $88,000 C. $88,000; $90,000 D. $80,000; $99,000
A cartel arrangement is likely to be successful for its members only if it can
A) assign sales to specific members. B) keep new firms from entering the industry. C) prevent firms not in the cartel from marketing close substitutes. D) do all of the above.
As a result of slow economic growth following the recession of 2007-2009, companies including Intel and Worthington Industries cut production and employment in 2015 as a result of the sluggish growth in the total amount of spending in the economy. The total amount of spending in the economy is known as
A) planned investment spending. B) aggregate expenditure. C) deficit spending. D) equilibrium spending.
The country of Glassen has experienced an expansionary gap for the last three years. The advocates of passive policy are likely to suggest a policy which causes _____. a. the short-run aggregate supply to shift to the left
b. the short-run aggregate supply to shift to the right. c. rising prices to shift the aggregate demand to the left. d. wages to fall relatively quickly. e. aggregate demand to shift to the right as wages increase.