Refer to Figure 16-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue

A) expansionary fiscal policy.
B) expansionary monetary policy.
C) contractionary fiscal policy.
D) contractionary automatic stabilizers.
E) contractionary monetary policy.


A

Economics

You might also like to view...

Macroeconomics is the study of economy-wide phenomena

a. True b. False Indicate whether the statement is true or false

Economics

________ are funds that banks have on hand or on deposit with the Fed to promote banking safety, to facilitate interbank transfers of funds, to satisfy the cash demands of their customers and to comply with Federal Reserve regulations

a. reserves b. token money c. checks d. none of the above

Economics

What is a recession?

(A) A very mild and short expansion. (B) A period when the economy is neither expanding nor contracting. (C) A period when real GDP falls for at least six months. (D) A long and severe depression.

Economics

Which of the following is true?

A. Each Nash equilibrium is a perfect equilibrium. B. In a one-shot game, a collusive strategy always represents a Nash equilibrium. C. Every perfect equilibrium is a Nash equilibrium. D. A perfect equilibrium occurs when each player is doing the best he can regardless of what the other player is doing.

Economics