The goal of expansionary fiscal policy with respect to output is to:
A. increase spending and aggregate demand to get back to an output level the government is comfortable with.
B. decrease government spending in an attempt to get the private economy back on track.
C. increase spending and shift aggregate demand to the left in an effort to reach full employment output.
D. increase spending and shift aggregate demand to the right in an effort to reach full employment output.
Answer: D
You might also like to view...
A production possibilities frontier figure does NOT illustrate
A) the limits on production imposed by our limited resources and technology. B) the exchange of one good or service for another. C) opportunity cost. D) attainable and unattainable points.
A person with AIDS has a guaranteed right to apply for health insurance and receive coverage at the same rate as a healthy person. What is the likely result for the insurance company?
a. Rational ignorance b. The principle-agent problem c. The substitution effect d. Externalities e. Adverse selection
Which of the following is true regarding the interest rate earned on the reserves that bank's keep at the Fed?
A) These reserves earn no interest. B) It is relatively low. C) It varies depending on the federal funds rate. D) It is equal to the discount rate.
At a price of $20, the marginal revenue of a monopolist is $12. If the marginal cost of production is $10, what should the monopolist do in order to maximize profits?
A. Increase its price. B. Decrease its price. C. Keep its price at the same level. D. There is not enough information to solve.