What are the key differences between how we illustrate an expansionary fiscal policy in the basic aggregate demand and aggregate supply model and in the dynamic aggregate demand and aggregate supply model?
What will be an ideal response?
In the basic aggregate demand and aggregate supply model, expansionary fiscal policy is illustrated by a rightward shift of the aggregate demand curve, with the short-run aggregate supply curve and long-run aggregate supply curve remaining stationary. The dynamic aggregate demand and aggregate supply model takes into account the economy experiencing continuing inflation from year to year and the economy experiencing long-run growth. In the dynamic model, expansionary fiscal policy is illustrated by a rightward shift of the aggregate demand curve, a rightward shift of the short-run aggregate supply curve, and a rightward shift of the long-run aggregate supply curve.
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All of the following will tend to increase the number of years until the oil stock is depleted except
A) falling oil prices. B) additional oil exploration. C) conservation measures. D) development of oil substitutes.
The provisions of which of the following labor legislation allowed the president to seek a court injunction to prevent a strike for 80 days if the nation's economy is at risk?
a. Landrum-Griffen Act b. Taft-Hartley Act c. Wagner Act d. Walsh-Healy Act
A rightward shift in the supply curve is called:
a. a decrease in supply. b. an increase in consumption. c. an increase in supply. d. an decrease in income.
Recall the Application about the study done about the perceptions and behavior of the unemployed in Great Britain to answer the following question(s).According to this Application, becoming unemployed caused ________ in perceived well-being for men if those in their peer group were also unemployed.
A. a larger decrease B. a smaller decrease C. no change D. an large increase