The government might increase its spending to end a recession because:
A. allowing the short-run aggregate supply to adjust since back to the long-run can take a long time.
B. the economy experiences lower prices at the long-run equilibrium.
C. the economy enjoys a higher level of output in the long run.
D. None of these justify why the government might change its spending to end a recession.
A. allowing the short-run aggregate supply to adjust since back to the long-run can take a long time.
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A fishing boat owner brings 50,000 fish to market and the market price is $4 per fish. Her average variable cost of 50,000 fish is $1 and the fixed cost of the boat is $100,000 . what is her profit per fish?
a. $1 b. $500 c. $5,000 d. $25,000 e. $500,000
A budget surplus occurs when government receipts exceed government spending
a. True b. False Indicate whether the statement is true or false
A cartel of 10 firms that controls 100 percent of the output in a market and faces the same cost schedules that a monopolist would in the market will have to set a price somewhat lower than the monopoly price for its product.
Answer the following statement true (T) or false (F)
The acronym HICP stands for:
(a) Harmonised Index of Consumer Prices; (b) Higher Institute for Central Planning; (c) Harmonised Index of Current Production; (d) Hyper-Inflation Control Programme.