An expansionary fiscal policy would consist of (1) _____ and/or (2) _______.
Fill in the blank(s) with the appropriate word(s).
(1) a tax cut; (2) increased government spending
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The points along the demand curve represent the maximum willingness of consumers to purchase a product
a. True b. False Indicate whether the statement is true or false
Under adaptive expectations theory, a decrease in the short-run aggregate demand curve ____ the inflation rate and ____ the unemployment rate
a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases
Which of the following shifts both short-run and long-run aggregate supply to the left?
a. a decrease in the actual rate of inflation b. a decrease in the expected rate of inflation c. a decrease in the capital stock d. a drought in the Midwest agricultural areas.
A person can benefit from specialization and trade by obtaining a good at a price that is
a. lower than his or her opportunity cost of that good. b. the same as his or her opportunity cost of that good. c. higher than his or her opportunity cost of that good. d. different than his or her opportunity cost of that good.