During the Great Depression, real GDP decreased, unemployment soared, and the inflation rate was negative. Which would have been the appropriate federal government policy combination to improve economic performance?
A) increase government expenditure, decrease taxes, increase the quantity of money
B) increase government expenditure, decrease taxes, decrease the quantity of money
C) decrease government expenditure, increase taxes, decrease the quantity of money
D) do not change government expenditures or taxes , increase the quantity of money
E) decrease government expenditures, increase taxes, do not change the quantity of money
A
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The Lorenz curve represents: a. the line of perfect inequality
b. the line of perfect equality. c. the nonwage income of households. d. the actual distribution of income.
When the money market is drawn with the value of money on the vertical axis, as the price level increases which of the following increases?
a. the quantity of money demanded and the quantity of money supplied b. the quantity of money demanded but not the quantity of money supplied c. the quantity of money supplied but not the quantity of money demanded d. neither the quantity of money supplied nor the quantity of money demanded
The demand for education is determined by the
A. demand for human capital. B. demand for nonhuman capital. C. supply of human capital. D. supply of nonhuman capital.
In Figure 6.2, the price is $20 and the shaded area represents:
A. producer surplus. B. consumer surplus. C. market equilibrium. D. a price ceiling.