Refer to the figure above. The economy is at equilibrium at point A. What fiscal policy would be most appropriate to control demand-pull inflation?
Shift aggregate demand by decreasing taxes
Shift aggregate demand by increasing government spending
Shift aggregate demand by increasing taxes
Shift aggregate supply by increasing taxes
Shift aggregate demand by increasing taxes
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Which of the following is a monetary policy goal?
i. keeping the inflation rate low ii. attaining maximum employment iii. keeping the long-term interest rate at a moderate level A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
What two key factors trigger speculative attacks leading to currency cries in emerging market countries?
What will be an ideal response?
Which of the following is a major reason for offshoring?
a. Advances in information and communication technologies. b. The inability of companies to fragment production processes. c. The gradual decline in worldwide competition. d. All of the above are major reasons for offshoring.
Wage differentials across individual workers are determined in part by
A. effort. B. social capital. C. productivity. D. luck. E. All of these are determinants of wage differentials.