If there's demand-pull inflation in the economy, then government policy should
a. increase taxes and cut spending, which would shift AD to the left
b. increase taxes and spending, which would shift AD to the left
c. decrease taxes and spending, which would shift AD to the left
d. decrease taxes and increase spending, which would shift AD to the right
e. increase taxes and cut its spending, which would shift AS to the left
A
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What will be an ideal response?
In the Keynesian model,
a. the autonomous expenditure multiplier is lower than the tax multiplier. b. the autonomous tax multiplier is positive and large. c. the autonomous tax multiplier is larger (in absolute value) than the tax multiplier. d. the tax multiplier is equal to 1. e. none of the above.
Suppose a firm lowers its price in order to increase sales. The lower price will reduce the revenue the firm earns on the:
A. marginal units. B. infra marginal units. C. surplus units. D. incremental units.
How do you calculate the total consumer surplus in any market? It is the area
a. price times quantity b. above the supply curve and below the price c. beneath the demand curve d. beneath the demand curve and above the price e. below the supply curve and above the demand curve