When the government enacts fiscal policy, it:
A. might make things worse.
B. can bring the economy to its long-run equilibrium more quickly than it can correct itself.
C. may not always be able to improve matters.
D. All of these are true.
Answer: D
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What will be an ideal response?
What does an unexpected decrease in the growth rate of the money supply do to inflation and unemployment in the short-run? What does it do to inflation and unemployment in the long run?
A futures contract
A) gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B) gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C) is a contract in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D) gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
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