A congressman states, "If a government attempts to increase employment through increased government spending, all we will end up with is a higher price level." This congressman assumes that the
A. aggregate supply curve is a vertical line.
B. aggregate demand curve is a horizontal line.
C. aggregate demand curve is a vertical line.
D. aggregate supply curve is a horizontal line.
Answer: A
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Using the GG-LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports
What will be an ideal response?
According to the partisan party model,
a. the primary emphasis of the liberal party is on full employment and income distribution. b. the liberal party stresses price stability as their most important goal. c. employment stability is most important to the conservative party. d. only two parties exist. e. Both a and d.
Under the collusion model, the outcome in an oligopoly is the same as a monopoly.
Answer the following statement true (T) or false (F)
According to the Taylor rule, if the inflation rate in the last year was 2% and output was equal to its full-employment level, the nominal Fed funds rate should be
A. 3%. B. 5%. C. 4%. D. 6%.