The 2008 and 2009 tax cuts and the increase in government spending that occurred at the same time did not have the same inflationary impact as the similar policy in the 1960s because:
A. monetary policymakers, having perceived the inflation risk, responded appropriately.
B. the fiscal stimulus came at a time when the economy was weakening due to other factors.
C. aggregate demand was far below potential output.
D. all of the answers provided are correct.
Answer: D
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The price elasticity of demand depends on the
A) proportion of consumers' budgets spent on the good. B) number of available substitutes. C) extent to which the commodity is a luxury. D) all of the above.
Select the phrase that correctly completes the following statement. "A decrease in the expected future price caused an increase in the supply of smartphones. As a result
A) the equilibrium quantity of smartphones decreased." B) the price of smartphones decreased and the quantity of smartphones demanded increased." C) the price of smartphones decreased and the demand for smartphones increased." D) the price of smartphones decreased. The lower price caused the supply of smartphones to decrease."
A good way to encourage agricultural production is to
a. encourage farmers to work harder b. subsidize input prices for farmers c. permit farm prices to rise with increasing demand d. create a monopoly firm to buy all farm output e. all of the above
Of the following balance of payments measures, which one shows bestwhether there are speculative financial capital flows from the nation?
a. Balance on goods & services. b. Balance on goods, services, and net income. c. Overall balance. d. Financial account. e. Capital account.