According to aggregate demand and supply analysis, the negative demand shock of 2000-2004 had the effect of
A) increasing aggregate output, lowering unemployment, and raising inflation.
B) decreasing aggregate output, raising unemployment, and raising inflation.
C) increasing aggregate output, lowering unemployment, and lowering inflation.
D) decreasing aggregate output, raising unemployment, and lowering inflation.
D
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The single most important observation of the book is the causal significance of aggregate demand policies for the incidence of poverty
Indicate whether the statement is true or false
Which of the following is true of the Golden Age of fiscal policy of the 1960s? a. Fiscal policy was used to prevent output from expanding in 1964
b. Lyndon B. Johnson cut income tax rates to reduce inflationary pressures in the economy c. A tax cut was introduced to increase savings and unemployment. d. A tax cut increased disposable income and consumption. e. The unemployment rate rose by 5 percent for the first time in seven years
The "law" of diminishing returns rests on the "law" of variable input proportions
a. True b. False Indicate whether the statement is true or false
Other things being equal, when the money price of a good increases, its relative price
A) stays the same. B) increases. C) decreases. D) falls to zero.