Based on the table showing a summary of fiscal tools, if the government increases its purchases, it is most likely trying to ______.
a. fight inflation
b. enact contractionary policy
c. decrease aggregate demand
d. fight unemployment
d. fight unemployment
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The deposit expansion multiplier would increase if the Fed were to
A) raise the required reserve ratio. B) lower the required reserve ratio. C) raise the discount rate. D) sell bonds.
Sam buys gasoline and coffee each week. In order to draw his budget line between gasoline and coffee, Sam would have to know
A) only how much income he has available to spend on gasoline and coffee. B) only the prices of one gallon of gasoline and one pound of coffee. C) only how much gasoline he wants to buy and how much coffee he wants to drink. D) both how much income he has to spend and the prices of one gallon of gasoline and one pound of coffee.
Which following segment(s) of the aggregate supply curve represents the Phillips curve trade-offs?
a. horizontal segment b. horizontal and the intermediate segments c. intermediate segment d. intermediate and the vertical segments e. vertical segment
A cyclical deficit is the portion of the deficit that exists when:
A. the economy is at potential income. B. inflation is fully anticipated. C. inflation is not fully anticipated. D. the economy is below potential income.