A stimulus to aggregate demand will normally pull prices up but cause a reduction in output
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. What is the probability of drawing a red marble in each game?
A. 10 percent in both games B. 10 percent in the first game and 25 percent in the second game C. 25 percent in the first game and 10 percent in the second game D. 25 percent in both games
To increase employment, the most effective type of government budget would be a
a. surplus budget. b. balanced budget. c. deficit budget. d. falling budget.
The trend followed by the annual federal budget deficits and surpluses as a percentage of GDP during the 1990s and 2000 . reveals: a. large deficits in the early 1990s
b. surpluses in the early 1990s. c. a balanced budget in the early 2000s. d. surpluses in the late 2000s.
An important type of information asymmetry is:
A. ethical constraint. B. advantage imbalance. C. information withholding. D. moral hazard.