Combating recession may require the government to

A. decrease aggregate supply.
B. increase aggregate demand.
C. decrease aggregate demand.
D. decrease government spending.


Answer: B

Economics

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An increase in the required reserve ratio by the Federal Reserve would:

a. cause M1 to contract. b. cause M1 to expand. c. have no effect on M1 or M2. d. affect only M2, not M1.

Economics

The Consumer Price Index is a measure of the average of the prices paid by ________ for a fixed basket of consumer goods and services

A) urban consumers B) all consumers C) urban wage earners and clerical workers D) consumers living in cities with a population greater than 100,000

Economics

An industry that generates detrimental externalities will have a marginal social cost higher than the marginal private cost to the industry.

Answer the following statement true (T) or false (F)

Economics

Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:

A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.

Economics