If the economy is in a recession, in an effort to move the economy to the long-run equilibrium, the government could:
A. increase spending to increase aggregate demand.
B. decrease spending to decrease aggregate demand.
C. increase spending to decrease aggregate demand.
D. decrease spending to increase aggregate demand.
A. increase spending to increase aggregate demand.
You might also like to view...
The Ricardian model attributes the gains from trade associated with the principle of comparative advantage result to
A) differences in technology. B) differences in preferences. C) differences in labor productivity. D) differences in resources. E) gravity relationships among countries.
According to Edward Denison's estimates, the largest proportion of economic growth during the 1929-82 period was
a. growth in the labor input. b. growth in output per unit of input. c. growth in the capital input. d. economies of scale. e. education.
The aggregate supply curve is horizontal in the intermediate range
a. True b. False Indicate whether the statement is true or false
Define monopsony