Which of the following statements is most correct?
A. Policymakers can shift the short-run aggregate supply curve
B. Shifts in the monetary policy reaction function used to stabilize the economy shift the short-run aggregate supply curve.
C. Policymakers can neutralize movements in aggregate demand.
D. Policymakers can eliminate the effects of negative supply shock.
Answer: C
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What is the effect on the equilibrium price and equilibrium quantity of theater tickets if the price of an orchestra ticket increases and the wage rate paid to actors decreases? The equilibrium price of a theater ticket _____ and the equilibrium quantity _____.
A. always falls ; increases B. always falls; decreases C. rises, falls, or remains the same; decreases D. does not change; does not change E. rises, falls, or remains the same; increases
A speculative attack involves massive sales of a currency or purchases of a currency that cause a sharp change in the exchange rate under a exchange rate system
A) weak; strong; fixed B) strong; weak; fixed C) weak; strong; floating D) strong; weak; floating
Since the income elasticity for food is estimated to be 0.51, it appears that the proportion of income spent by poor people on food is ____ the proportion spent by those with higher incomes
a. greater than b. less than c. about the same as d. about half as great as
Revenues flowing to the government from government-run or government-sponsored businesses, such as public utilities and state lotteries, are known as:
A. proprietary income. B. transfer payments. C. tax revenue. D. subsidies.