If aggregate supply rises sharply so that a recession occurs, then the prescription is for expansionary fiscal policy
Select whether the statement is true or false.
A. True
B. False
B. False
This statement is false. If aggregate demand falls sharply so that a recession occurs, then the prescription is for expansionary fiscal policy.
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The table below shows the weekly supply for hamburgers in a market where there are just three sellers.PriceSeller 1 Qs 1Seller 2 Qs 2Seller 3 Qs 3$58544643343222211 If there were 300 sellers in the market, each with a supply schedule identical to seller 1 in the table above, then the weekly quantity of hamburgers supplied in the market at a price of $2 would be
A. 900. B. 1,500. C. 600. D. 200.
The United States switched from being a ________ to being a ________ in the early 1980s, when it started to run large current account ________
A) net lender; net borrower; deficits B) net borrower; net lender; deficits C) net borrower; net lender; surpluses D) debtor nation; creditor nation; deficits E) net lender; net borrower; surpluses
According to the text, the most serious cost of continued inflation in a democratic society is
A) its tendency to undermine social consensus and feed political conflict. B) the eventual recession that must inevitably occur as a result of the inflation. C) the open and disguised unemployment that accompanies it, especially among minorities and teenagers. D) the slowdown in the rate of economic growth that it causes. E) the steady rise in the cost of living that it entails.
If individual firms face a horizontal demand curve at a given market price:
A. price is equal to average total cost. B. price is equal to marginal cost. C. price is equal to marginal revenue. D. price is equal to average variable cost.