Keynesian belief that the aggregate supply curve is relatively flat in the short run means that they expect their policies to cause
a. small increases in output and much inflation.
b. small increases in output and little inflation.
c. large increases in output and little inflation.
d. large increases in output and much inflation.
c
You might also like to view...
If the interest rate is 10 percent, the present value of $400 to be received two years from today is about
A) $331. B) $484. C) $364. D) $440.
Allocative efficiency is achieved when firms produce goods and services
A) that consumers value most. B) at a marginal cost of zero. C) at the lowest possible cost. D) at the lowest opportunity cost.
If Ed is willing to pay a maximum of $200 for a tweed sport coat but buys one for $180, that $20 saved is
a. his reservation price b. the store's producer surplus c. his total expenditure d. his marginal utility e. his consumer surplus
Figure 32-3
?
Figure 32-3 shows the impact of deficit spending and the corresponding economic expansion on the demand curve for money. If the Federal Reserve does not want interest rates to rise, it will
A. shift the money supply curve to the right by monetizing the deficit. B. shift the money supply curve to the left by open-market sales of government securities. C. maintain the current targets for both M1 and M2 money stocks. D. engage in contractionary monetary policy, such as increases in the discount rate.