When will stabilization policy be most effective in combating inflation?
A. When AS is flat
B. When AS is very steep
C. When AS has a moderately upward slope
D. When AS has a moderately downward slope
Answer: B
You might also like to view...
Rebecca, a citizen of U.S., imported a watch from Switzerland. This transaction leads to a(n) ________
A) increase in the GNP of U.S. B) increase in the GDP of Switzerland C) decrease in the GDP of Switzerland D) increase in the GDP of U.S.
A sudden appreciation in the exchange rate of a country deteriorates the terms of trade of the country
a. True b. False Indicate whether the statement is true or false
The final element of a financial crisis is
a. an economic downturn. b. a decline in confidence in financial institutions. c. declining prices of real estate or other assets. d. a vicious circle.
Which of the following does NOT shift the U.S. aggregate demand curve?
A. an increase in the supply of money B. an increase in GDP in Japan C. a decrease in taxes D. a decrease in the price level