If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) government purchases.
B) oil prices.
C) the money supply and a decrease in interest rates.
D) taxes.
A
You might also like to view...
The fastest growing productivity increases in the United States have occurred in the personal services sector
a. True b. False Indicate whether the statement is true or false
Melissa offers you $1,000 today or $1,500 in 5 years. You would prefer to take the $1,500 in 5 years if the interest rate is
a. 8 percent. b. 9 percent. c. 10 percent. d. All of the above are correct.
Based on the table, the increase in government purchases changes aggregate demand ______.
a. less than the combined changes in consumption purchases
b. more than the combined changes in consumption purchases
c. the same amount as the combined changes in consumption purchases
d. the same amount as the first individual round of consumption purchases
Why is it important to account for the net foreign factor income when calculating domestic income instead of national income?
What will be an ideal response?