During the 1970s, countercyclical fiscal policy
a. to spur increases in real GDP failed
b. worked better than predicted, curbing inflation while decreasing unemployment rates
c. demonstrated that the economy could be fine-tuned using aggressive fiscal policy
d. showed that the Keynesian assumption about the shape of the aggregate supply curve was basically correct
e. failed to lower the unemployment rate and actually increased the inflation rate
E
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Which of the following would not shift the aggregate demand curve?
A. Income tax rates B. Real interest rates C. Productivity rates D. Foreign-exchange rates
In the above figure, the shift from AD1 to AD2 might have been the result of
A) an increase in government expenditure. B) a decrease in taxes. C) an increase in the quantity of money. D) All of the above answers are correct.
Which of the following is true of scarcity?
a. It applies to raw materials; manufactured goods are not scarce. b. It affects all countries except the United States and Canada. c. It affects only poor nations. d. It is a basic problem of economics that affects all nations.
Mr. Clooney inherited a sum of $30,000 in 1990. If the price index for 1990 was 100 and the price index for 2014 is 188, the value of the money he inherited in 2014 dollars is ________.
A) $56,400 B) $45,200 C) $38,800 D) $48,000