If you were to use an Aggregate Supply - Aggregate Demand diagram to model nondiscretionary and discretionary fiscal policy in reaction to a negative aggregate demand shock, you would see the aggregate demand curve move
A. to the left as a result of the shock.
B. to the left, back toward its pre-shock position as a result of these policies.
C. to the right as a result of the shock.
D. back toward its pre-shock position as a result of these policies.
Answer: B
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Refer to Figure 10-6. A change in the price of popcorn only is shown in
A) Panel A. B) Panel B. C) Panel C. D) none of the above panels.
Explain the motives of developed countries in providing foreign aid
What will be an ideal response?
If the Japanese price level falls relative to the price level in the United States, then:
a. Japanese buy less U.S. exports. b. the demand for dollars decreases. c. the supply of dollars increases. d. the value of the dollar falls. e. all of these are true.
Which of the following represents the true economic cost of production when firms produce goods that cause negative externalities?
A) the private cost of production B) the social cost of production C) the external cost of production D) the explicit cost of production