Short-run expansionary Fiscal Policy would result in
A. aggregate demand moving to the left.
B. aggregate supply moving to the left.
C. aggregate supply moving to the right.
D. aggregate demand moving to the right.
Answer: D
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Van, whose utility of wealth curve is shown in the above figure, owns a home that is valued at $100,000. There is a 10 percent chance that the house will be destroyed by hurricane. The minimum cost of insurance in this case is
A) $10,000. B) $20,000. C) $30,000. D) $40,000.
In 2004, retailers and exporters in the United States were happy, as were their customers from abroad, due to:
a. a reduction in import tariffs by the EU. b. the lifting of an embargo on U.S. exports to Germany. c. the high value of the U.S. dollar compared to other currencies. d. the low value of the U.S. dollar compared to other currencies.
The short-run aggregate supply curve is:
A. an upward-sloping curve that intersects the aggregate demand curve and the long-run aggregate supply curve. B. a vertical line that intersects the aggregate demand curve but not the long-run aggregate supply curve. C. a horizontal line that intersects the aggregate demand curve and the long-run aggregate supply curve. D. an upward-sloping curve located to the left of the long-run aggregate supply curve
Which of the following explains the shape of an average total cost (ATC) curve?
a. Average fixed cost drives up ATC at very high levels of output. b. ATC is high at both very small and very large levels of output. c. ATC curves are U-shaped because variable input costs fluctuate. d. ATC is low at low output and high at high output.