One way fiscal policy affects aggregate demand is:
A. directly through government spending.
B. directly through tariffs.
C. directly through taxation.
D. All of these are true.
A. directly through government spending.
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The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, cherry farmers would receive ________ per pound of cherries
A) $2.50 B) $1.50 C) $2.00 D) $1.00 E) $0.50
Refer to Figure 13-4. In the figure above, LRAS1 and SRAS1 denote LRAS and SRAS in year 1, while LRAS2 and SRAS2 denote LRAS and SRAS in year 2. Given the economy is at point A in year 1, what is the growth rate in potential GDP in year 2?
A) 8% B) 9.1% C) 10% D) 12%
To non-activists, which of the following is the most useful stabilization policy?
A) procyclical monetary and fiscal policy changes B) countercyclical monetary changes C) government spending changes D) None of these.
United States coins and currency are backed by
A) silver. B) gold. C) reserves of foreign currencies. D) confidence that they will retain their value.