If the economy in the graph shown is currently at point D, we can conclude the:
A. economy is in an economic boom.
B. government may want to enact contractionary fiscal policy.
C. unemployment rate is likely very low.
D. All of these are likely to be true.
D. All of these are likely to be true.
You might also like to view...
Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What effect does this change have on the current exchange rate?
A) It will rise. B) It will fall. C) It will remain unchanged. D) Because both the supply and demand curves shift, the effect on the exchange rate is unpredictable.
Traveler's check are
A) part of M1 only. B) part of M2 only. C) part of M1 and M2. D) not part of M1 or M2.
The value of the films starring Charlie Chaplin produced in the United States that still exist will not be included in this year's U.S. gross domestic product (GDP) because: a. Charlie Chaplin was not an American citizen
b. Charlie Chaplin did not make the films this year. c. the films earn less revenue. d. the films no longer have any value except to collectors. e. films are intermediate goods.
With the economy booming, the government starts to worry about the increasing rate of inflation, and decides to cut its spending on highway maintenance and defer it to sometime in the future. This is an example of:
A. an automatic stabilizer. B. discretionary fiscal policy. C. expansionary fiscal policy. D. None of these is true.