If the government undertakes expansionary fiscal policy, it:
A. could increase income taxes.
B. expects aggregate demand to increase.
C. expects aggregate demand to decrease.
D. should force people to change their spending patterns.
B. expects aggregate demand to increase.
You might also like to view...
Which of the two features of the IMF Articles of Agreement helped promote flexibility in external adjustment?
A) IMF members helped countries maintain full employment. B) IMF allowed countries to attain internal balance. C) New countries would enter the agreement if they fixed their exchange rate. D) IMF members contributed their currency to form a pool of resources that IMF could lend to countries in need and parities in the exchange rate against the dollar could be adjusted with agreement of IMF. E) IMF members argued against the use of floating exchange rates.
To avoid a rule-of-reason violation, the manager of a designer women's clothing firm should not undertake which of these actions without first speaking to an attorney?
A) enter into an agreement with another designer women's clothing firm to set the price of the clothing B) enter into an agreement with another designer women's clothing firm to only sell in certain areas of the world C) enter into an agreement with another designer women's clothing firm not to sell to a particular customer D) enter into an agreement with a distributor about the minimum price the distributor can resell the clothing
Suppose OPEC is unable to come to an agreement regarding oil production and as a result the price of oil drops. Which of the following would you expect to occur as a result of this favorable supply shock?
a. The short-run Phillips curve will shift to the right and the unemployment rate will increase. b. The short-run Phillips curve will shift to the right and the unemployment rate will decrease. c. The short-run Phillips curve will shift to the left and the unemployment rate will increase. d. The short-run Phillips curve will shift to the left and the unemployment rate will decrease.
Microeconomics deals with the analysis of all the following questions except how:
A. the wages of carpenters are determined. B. high did unemployment rise during the Great Depression. C. does Ford decide how to price its cars. D. does a college student decide how to spend her income.