Suppose John is a conservative and the economy is in a recession. Which fiscal policy does he recommend?
a. increase taxes
b. decrease taxes
c. increase G spending
d. decrease G spending
e. increase the money supply
Ans: b. decrease taxes
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Suppose the economy is initially operating at point A in the above figure. Which of the following statements is TRUE?
A) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the short run. B) An unexpected reduction in aggregate demand will cause the economy to move from point A to point C in the short run. C) An unexpected reduction in aggregate demand will cause the economy to move from point A to point B in the long run. D) none of the above
The EU currently is a preferential trade agreement with no governmental institutions
Indicate whether the statement is true or false
Which of the following is FALSE?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other b. After acquiring a substitute product, lower prices on both the products c. After acquiring a complementary product, lower prices on both the products d. All of the above
As a result of the Great Recession, job growth did not resume until
a. September 2008 b. March 2009 c. September 2009 d. March 2010