Refer to the diagram, in which Q f is the full-employment output. An expansionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at:
A. AD 0 .
B. AD 1 .
C. AD 2 .
D. AD 3 .
A. AD 0 .
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One way to restructure Social Security to meet its future obligations would be to _____
a. lower the retirement age b. reduce Social Security benefits c. increase benefits only on the poor d. eliminating pay-as-you-go
Progressive Insurance's 'Tripsense' monitors driving patterns of the people who purchase the related insurance policy. This lowers insurance costs because
a. only less reckless drivers will accept the device b. only more reckless drivers will accept the device c. drivers will believe they can now drive more recklessly d. it does not affect care in driving
Input prices are fixed for a period of time and this causes firms to increase production as prices increase
a. True b. False Indicate whether the statement is true or false
In a simplified banking system subject to a 25 percent required reserve ratio, a $1,000 open-market purchase by the Fed would cause the money supply to:
A. increase by $1,000. B. decrease by $1,000. C. decrease by $4,000. D. increase by $4,000.