In the short run, an extremely large budget deficit run by a government can:
a. shift the aggregate demand curve to the right and cause deflation
b. shift the aggregate demand curve to the left and cause unemployment.
c. shift the aggregate demand curve to the right and cause severe inflation.
d. shift the aggregate demand curve to the left and cause underemployment.
c
You might also like to view...
If 10 workers can produce 1,500 units of output and 11 workers can produce 1,600 units of output, then the average product of 11 workers is
A) 1,600 units. B) 1,500 units. C) 145.5 units. D) 100 units. E) 136.4 units.
In each of the following cases, identify whether a competitive firm's producer surplus will increase, decrease, or remain unchanged
i. The demand for the product increases ii. The firm's marginal cost of production increases iii. The market price of the product falls
Keynes thought that the major economic reason for the Great Depression was
A. the existence of labor unions. B. a lack of investment due to poor profit expectations. C. the existence of monopolies. D. high interest rates.
In 2016, there was no change in inventories, which implies that GDP was ________ in 2016.
A. less than final sales B. zero C. greater than final sales D. exactly equal to final sales