Assuming the economy is represented by the graph shown, if the government were to enact a partially successful expansionary fiscal policy, it would be most likely to:
A. move from equilibrium B to A.
B. move from equilibrium A to B.
C. cause deflation.
D. cause unemployment to temporarily increase.
Answer: B
You might also like to view...
The majority of evidence points to the fact that, in the last decade in the United States, labor productivity has
A) stayed the same. B) increased. C) decreased in the manufacturing sector but increased in the service sector. D) decreased.
A variable that responds to a change in another variable is called a(n) _______ variable.
A) independent B) dependent C) theoretical D) all of the above are true
Any firm's total revenue equals
A. MR/q. B. P × q. C. P/q. D. MR × q.
When attempting to determine if a sales tax is regressive or not, it is important to consider _____
a. bequests b. that a general sales tax is a consumption tax c. that people pay income taxes d. that individual's incomes change over their lifetime