The massive increase in government spending during World War II moved the economy in the span of a few short years from mass unemployment and price stability to "overfull" employment and severe demand-pull inflation. This situation can be best characterized by:
a. An increase in aggregate supply
b. An increase in aggregate demand
c. A decrease in aggregate supply
d. A decrease in aggregate demand
b. An increase in aggregate demand
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Which of the following is true of the 2008 Troubled Asset Relief Program?
A) It was a contractionary fiscal policy. B) It was a contractionary monetary policy. C) It was a mix of monetary and fiscal policies. D) It mainly aimed at reducing inflation.
If average fixed cost and average variable cost are summed together, the result is: a. total revenue
b. total profit. c. total cost. d. average total cost.
Monetizing the deficit contributes to the inflationary pressures that are already present in the economy
a. True b. False Indicate whether the statement is true or false
Tom, Mary, and Jill have apartments in the same building. Installing a security system for their building would cost $750 . Tom is willing to pay $100 for the security system, Mary is willing to pay $300, and Jill is willing to pay $300 . They meet to vote on whether to pay $250 each. The system will be installed if at least two of them vote for it. After the meeting, the security system will
_____, and this illustrates _____. a. be installed; the free rider problem b. not be installed; the free rider problem c. be installed; a negative externality d. not be installed; a negative externality