In the short run, fiscal and monetary policy cause unemployment and inflation to move in opposite directions because
A. the Fed and Congress rarely agree on policy.
B. one controls aggregate demand, the other controls aggregate supply.
C. both policies control only aggregate supply.
D. both policies control only aggregate demand.
Answer: D
You might also like to view...
In the final phase of benefit-cost analysis, one of the steps that is generally conducted is
a. to compare time-adjusted benefits to zero b. to compare time-adjusted costs to unity c. to determine if PVB and PVC are inversely related d. to determine if an option is feasible
The table below shows the utility schedule for a consumer of candy bars. Candy Bars ConsumedTotal Utility001529312414515615713Based on the data in the above table you can conclude that the
A. marginal utility of the third unit is 4 utils. B. total utility of 2 units is 4 utils. C. marginal utility of the fourth unit is 14 utils. D. marginal utility of the sixth unit is 0 utils.
Which of the following government programs will NOT create a surplus?
A. farm price support payments B. the minimum wage law C. usury laws D. a price floor above the equilibrium price
A schedule which shows the various amounts of a product producers are willing and able to produce at each price in a series of possible prices during a specified period of time is called:
a. Quantity supplied b. Supply c. Quantity demanded d. Demand