A contractionary fiscal policy shifts the aggregate demand curve
A) to the right and is used to close an inflationary gap.
B) to the right and is used to close a recessionary gap.
C) to the left and is used to close an inflationary gap.
D) to the left and is used to close a recessionary gap.
Ans: C) to the left and is used to close an inflationary gap.
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Special Drawing Rights (SDRs) are issued to governments by the ________ to settle international debts and have replaced ________ in international transactions
A) Federal Reserve System; gold B) Federal Reserve System; dollars C) International Monetary Fund; gold D) International Monetary Fund; dollars
An economy operating inefficiently is graphed as a point ______ the production possibilities curve.
a. above
b. inside
c. outside
d. on
An expected increase in the future price of automobiles will lead to
A. a movement down the demand schedule for automobiles. B. a reduction in the demand for gasoline today. C. no predictable impact on today's demand for automobiles. D. an outward shift in demand for automobiles today.
Laronda went into the business of producing and selling greeting cards. For this business, which of the following is likely to be a fixed cost?
a. paper costs b. labor costs c. the 6-month lease for the factory d. long distance telephone costs