In the _______ range of the aggregate supply curve, expansionary fiscal policy that causes aggregate ______ to increase will lead to a higher price level and a higher equilibrium level of real GDP
a. Keynesian, supply
b. Classical, demand
c. Intermediate, demand
d. Intermediate, supply
c
You might also like to view...
Economists often say that trade is a win-win situation. How do you justify this?
In 2009 President Obama and Congress increased government spending. Some economists thought this increase would have little effect on output. Which of the following would make the effect of an increase in government expenditures on aggregate demand smaller?
a. the interest rate falls and aggregate supply is relatively flat b. the interest rate falls and aggregate supply is relatively steep c. the interest rate rises and aggregate supply is relatively flat d. the interest rate rises and aggregate supply is relatively steep
The demand for euros in the foreign exchange market equals 8,000 - 2,000 e and the supply of euros in the foreign exchange market equals 3,000 + 3,000 e, where e is the nominal exchange rate expressed in U.S. dollars per euro. If the euro is fixed at 1.25 U.S. dollars per euro, then the euro is ________ and Euroland has a balance-of-payments ________.
A. undervalued; surplus of 1,250 euros B. overvalued; deficit of 1,250 euros C. undervalued; deficit of 1,250 euros D. overvalued; surplus of 1,250 euros
During an economic boom:
A. the level of unemployment tends to be high. B. it is difficult for firms to recruit and retain workers. C. firms have an easier time purchasing raw materials. D. prices tend to decrease over time.