Using fiscal and monetary policies to deal with a demand shock ______.
a. will prevent the occurrence of a supply shock
b. will create a negative supply shock
c. is more effective than using them to deal with a supply shock
d. is less effective than using them to deal with a supply shock
c. is more effective than using them to deal with a supply shock
You might also like to view...
Which of the following will NOT cause a shift in the demand curve for reserves?
A) Business cycles B) A change in the federal funds rate C) Changes in deposit base D) Liquidity shocks
The interest rate on Baa corporate bonds is ________, on average, than interest rates on Treasuries, and the spread between these rates became ________ in the 1970s
A) lower; smaller B) lower; larger C) higher; smaller D) higher; larger
Average total cost is
a. AFC + (TVC/Q) b. TC/Q Incorrect. Please review Top Ten Concept # 6. c. (TFC/Q) + (TVC/Q) d. AFC + AVC e. all of the above
Suppose the demand curve is perfectly inelastic and the supply curve is upward sloping. The price sellers receive after a specific tax is imposed on sellers
A) is less than before the tax. B) is higher than before the tax. C) is unchanged. D) depends on the supply elasticity.