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
You might also like to view...
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.
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
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)
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.