The intent of contractionary fiscal policy is to
A. increase aggregate demand.
B. decrease aggregate demand.
C. decrease aggregate supply.
D. increase aggregate supply.
Answer: B
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What are compensating differentials?
What will be an ideal response?
Which of the following statements is true?
a. The national debt is the current year's amount by which the government is spending more than it collects as taxes. b. Deficits are financed by the government issuing for sale more government securities. c. The debt ceiling refers to the amount of debt at which the government is officially declared as being bankrupt. d. Internal national debt is the portion of the national debt owed to foreigners.
A market is classified as an oligopoly when
A) a few firms compete. B) many firms produce a slightly differentiated product. C) no matter how many firms are in the market, a barrier blocks entry by other new firms. D) many firms produce the same product. E) only one firm sells a product with no close substitutes.
Suppose the paper industry is in long-run competitive equilibrium and the demand for paper increases. If the industry has external diseconomies of scale, what will happen to the price of paper in the long run?
What will be an ideal response?