Expansionary fiscal policy should be used if:
A) aggregate demand-aggregate supply equilibrium is below potential output.
B) aggregate demand-aggregate supply equilibrium is above potential output.
C) aggregate demand-aggregate supply equilibrium is equal to potential output.
D) none of the above.
A
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Tom's marginal utility from a Sobe exceeds his marginal utility of crackers. Therefore, his total utility of Sobe must exceed his total utility of crackers
Indicate whether the statement is true or false
As the economy nears the end of an expansion, which of the following do we typically see?
A) falling wages relative to output prices B) rising interest rates C) rising firm profits D) rising levels of firm investment
The wealth effect explains the:
A. downward-sloping aggregate demand curve. B. downward-sloping aggregate supply curve. C. upward-sloping aggregate demand curve. D. upward-sloping aggregate supply curve.
The following provides information for a one-shot game.Firm AFirm B??Low PriceHigh Price?Low Price(2,2)(10,-8)?High Price(-8,10)(15,15)What are secure strategies for firm A and firm B respectively?
A. (high price, high price) B. Neither firm has a secure strategy. C. (high price, low price) D. (low price, low price)