An expenditure-changing policy
A) alters the direction of the economy's total demand for goods and services.
B) alters the level of the economy's total demand for goods and services.
C) has no effect on aggregate demand.
D) is the same thing as an expenditure-switching policy.
E) affects aggregate supply but not aggregate demand.
B
You might also like to view...
One of the defining characteristics of a perfectly competitive market is what type of product ?
Suppose firms in a perfectly competitive industry are making economic profits. As a result I. new firms enter the industry. II. the market price falls. III. the economic profits of the existing firms decrease
A) I, II and III B) I and II C) II and III D) I and III
Suppose an economy has an increase in labor input of 60 percent, while output has increased by 100 percent. Assuming no change in total factor productivity, calculate the percentage increase in the capital input
(Use the Cobb-Douglas production function Y = A .)
In long-run equilibrium, a monopolistically competitive firm's demand curve will be tangent to its average cost curve
a. True b. False Indicate whether the statement is true or false