Fiscal policy
a. is dangerous in the short run because it crowds out investment spending
b. can change equilibrium GDP in the short run
c. can change equilibrium GDP in the long run
d. can change equilibrium GDP in both the long and the short run
e. is dangerous in the long run because it triggers a multiplier effect
B
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Soda and hot dogs are complements for one another. If a shortage of carbonated water leads to an increase in the price of soda, then the
A) demand for hot dogs increases. B) demand for hot dogs decreases. C) quantity of hot dogs demanded increases. D) quantity of hot dogs demanded decreases. E) More information is needed to determine if the demand increases or decreases.
Which of these is a coincident economic indicator?
a. The demand for plant and machinery b. Personal income c. Real estate growth d. The interest rate e. The unemployment rate
Public choice is concerned with
A) relative prices. B) government decision making. C) marketing techniques. D) consumer surveying.
An inflation rate of over 500 percent per year would be classified as:
A. hyperinflation. B. inflation. C. relative inflation. D. deflation.