A budget deficit will be most inflationary if the aggregate
a. demand curve is very steep.
b. demand curve is very flat.
c. supply curve is very flat.
d. supply curve is very steep.
d
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Most economists believe that fiscal policy
a. only affects aggregate demand and not aggregate supply. b. primarily affects aggregate demand. c. primarily effects aggregate supply. d. only affects aggregate supply and not aggregate demand.
If an inefficient public monopoly cannot provide a service at a price that sufficient numbers of people are willing to pay it:
A. can remain in operation by covering its losses with revenue from taxes. B. must shut down and leave the industry in the long run. C. should expand operations until demand is satisfied. D. will seek out more efficiencies.
If a manager adopted both project A and project B simultaneously, the variance in returns associated with this joint project would be:ProjectBoom (25%)Recession (75%)A$30-$15B-$15$20
A. 500. B. 18.75. C. 30. D. 75.
When the production possibilities curve is bowed out, resources are:
A. equally well-suited to production of both goods. B. not being used efficiently. C. not equally suited to the production of both types of goods. D. increasing as more of one good is produced.