If the economy is on the flat part of the aggregate supply curve, contractionary fiscal policy works well to decrease the price level with little decrease output.
Answer the following statement true (T) or false (F)
False
You might also like to view...
During a recession when people's incomes drop, grocery chains experience much smaller declines in sales than do upscale department stores. Explain this phenomenon using the concept of elasticity
What will be an ideal response?
What role does human capital play in accounting for income inequality?
What will be an ideal response?
Which of the following statements about leading economic indicators is true?
a. Most people refer to them before making any important spending decision. b. They are the only economic indicators available to economists c. They indicate when an economy is in a recession or an expansion. d. They foreshadow turning points in the business cycle. e. They can predict precisely when turning points in an economy will occur.
Answer the following statements true (T) or false (F)
1. Command-and-control regulation is inflexible. It usually requires the same standard for all polluters, and often the same pollution-control technology as well. 2. If the pollution tax applies to every source of pollution, then no special favoritism or loopholes are created for politically well-connected producers. 3. Economists value a human life on the basis of studies of the value that people contribute to the economy of their nation. 4. No nation by itself can reduce emissions of carbon dioxide and other gases enough to solve the problem of global warming—not without the cooperation of other nations.