Fiscal policy most directly affects the economy by increasing or decreasing:
A. long-run aggregate supply.
B. the money supply.
C. interest rate.
D. aggregate demand.
Answer: D
You might also like to view...
According to classical economics, the amount that people save depends on the _____.
Fill in the blank(s) with the appropriate word(s).
An example of a good that is rival in consumption is:
A. a radio program. B. a copy of an economics textbook. C. an economics web page. D. a lighthouse.
Refer to the above figure. Suppose the economy is at E originally, when the dollar increases in value. Which aggregate supply curve applies if the value of real GDP increases?
A. 1 B. 2 C. 4 D. 5
A given reduction in government spending will dampen demand-pull inflation by a greater amount when the:
A. Economy's MPS is large B. Economy's aggregate supply curve is flat C. Economy's aggregate supply curve is steep D. Unemployment rate is high