The purpose of expansionary fiscal policy is to
a. increase output
b. prevent hyperinflation
c. slow the growth of the GDP
d. increase the separation between government and private industry
Ans: a. increase output
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Marginal revenue is equal to
A) total revenue divided by price. B) the change in total revenue divided by total output. C) the change in total revenue divided by the change in quantity sold. D) price divided by quantity sold.
A theory is an untested assertion of alleged fact
a. True b. False Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.
Which of the following is an example of a productivity shock?
A. The introduction of new management techniques B. A change in taxes on corporate profits C. An increase in the money supply D. A change in the level of government transfer programs