In an aggregate demand and aggregate supply graph, an expansionary fiscal policy can be best illustrated by a:
A. leftward shift in the aggregate demand curve.
B. change in the price level.
C. leftward shift in the aggregate supply curve.
D. rightward shift in the aggregate demand curve.
Answer: D
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Which of the following is a basic difference between the classical model and the Keynesian model in which the Keynesian short-run aggregate supply curve exists?
A. The classical model uses real GDP, while the Keynesian model uses nominal GDP. B. The classical model assumes that the position of the long run aggregate supply curve is determined by full employment, while the Keynesian model assumes that the long run aggregate supply curve will be to the left of full employment. C. The classical model assumes that the level of real GDP is supply determined, while the Keynesian model assumes that it is demand determined. D. The classical model assumes that the long run aggregate supply curve is vertical, while the Keynesian model assumes the long run aggregate supply curve is horizontal.
Doctors have ________ incentive to control their costs when consumers ________ for a visit to the doctor's office
A) more; only pay a deductible B) less; only pay a deductible C) less; pay entirely out of pocket D) more; have a third-party payer that pays
A nation's comparative advantage is determined by
A. the total cost of production. B. the quantity of resources required to produce a unit of output. C. the opportunity cost of producing an item relative to a trading partner's opportunity cost of producing the same item. D. specialization in the production of all goods.
Explain how an increase in government expenditure designed to increase aggregate demand can increase potential GDP and aggregate supply
What will be an ideal response?