In the long-run ISLM model and with everything else held constant, the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate
A) not change; not change
B) decrease; decrease
C) decrease; not change
D) not change; decrease
D
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If Cassie's Coffee House purchases 33 cents worth of ingredients and spends 36 cents on wages per cup of coffee to produce an 89 cent cup of coffee, then Cassie's Coffee House's contribution to GDP is ________ per cup of coffee
A) 20 cents B) 33 cents C) 36 cents D) 56 cents
Suppose that you consume only pizza and Diet Pepsi. The table above gives your utility from consuming these two goods. What is the marginal utility you get from the fourth slice of pizza?
A) 36 B) 18 C) 12 D) 4
Once the Phillips curve has shifted down, the economy is ________ because ________
A) better off; every unemployment rate becomes associated with a higher inflation rate B) better off; every inflation rate becomes associated with a lower unemployment rate C) worse off; every inflation rate becomes associated with a higher unemployment rate D) worse off; every unemployment rate becomes associated with a lower inflation rate
A worker received $5 for a daily wage in 1930 . What is the value of that wage today if the CPI was 17 in 1930 and is 230 today?
a. 37 cents b. $4.63 c. $67.65 d. $37.86