In the 2008-09 recession, the government deficit
A) stayed roughly constant.
B) decreased.
C) increased.
D) would have increased if the government had intervened.
C
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Suppose the absolute value of the price elasticity of demand for basketball game tickets on your campus is greater than 1. Increasing ticket prices will increase the total revenue from ticket sales
Indicate whether the statement is true or false
For the most part, fiscal policy affects the economy in the short run while monetary policy primarily matters in the long run
a. True b. False Indicate whether the statement is true or false
When interest rates allocate capital
A. many worthwhile projects fail to get funded and society is worse off. B. only investment projects are funded for which the expected benefits of the projects equal or exceed the opportunity cost of the projects. C. investment projects of firms tend to get funded while valuable social investments funded by the government tend not to get funded. D. there is an under investment in capital and overspending on durable consumer goods.
Give examples of factors that decrease short-run aggregate supply. Which way does the SAS curve shift?
What will be an ideal response?