Which of the following statements, ceteris paribus, accurately describes the impact of government spending on aggregate demand?
a. A decrease in government spending will decrease aggregate demand.
b. Aggregate demand rises with falling government spending.
c. Aggregate demand falls with stable government spending.
d. A decrease in government spending will stabilize aggregate demand.
a. A decrease in government spending will decrease aggregate demand.
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Probably the most significant factor explaining the drastic drop in the number of bank failures since the Great Depression has been
A) the creation of the FDIC. B) rapid economic growth since 1941. C) the employment of new procedures by the Federal Reserve. D) better bank management.
Most innovation comes from universities and governments, which are inherently market driven
a. True b. False Indicate whether the statement is true or false
Joan Robinson, the author of The Second Crisis of Economic Theory, argued that the content of fiscal policy is as important as its aggregate impact on the economy.
Answer the following statement true (T) or false (F)
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.