If an economy is at the short-run equilibrium illustrated by the figure above, a discretionary fiscal policy to adjust the economy to full employment is to
A) increase the quantity of money.
B) decrease taxes.
C) increase government spending.
D) increase taxes and decrease government spending simultaneously.
E) decrease the quantity of money.
D
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How long is the "short-run" time period in the economic analysis of the market?
A) three months or one business quarter B) total time in which sellers already in the market respond to changes in demand and equilibrium price C) total amount of time it takes new sellers to enter the market D) total amount of time it takes original sellers to leave the market
Refer to Figure 8.1. Which graph best represents a total cost function?
A. A
B. B
C. C
D. D
Suppose the economy's current AD and SRAS curves intersect to the right of Natural Real GDP. Keynesians might advise a policy of tax __________ to shift __________
A) increases; SRAS to the left B) increases; AD to the left C) cuts; SRAS to the right D) cuts; AD to the right
It is common for fashion trends to follow celebrity fashion choices. This is an example of:
A. inferring quality from price. B. bounded rationality. C. conspicuous consumption. D. focal point equilibrium.