Fiscal expansion
A) stimulates aggregate demand and causes output to decline.
B) decreases aggregate demand and causes output to decline.
C) stimulates aggregate demand and causes output to rise.
D) decreases aggregate demand and causes output to rise.
E) decreases government expenditures.
C
Economics
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Suppose inter-city bus travel is a substitute for transportation by train. Which of the following could then be TRUE?
A) The cross elasticity between bus and train travel could equal 0.65. B) The cross elasticity between bus and train travel could equal 1.0. C) The cross elasticity between bus and train travel could equal 1.25. D) All of the above could be true.
Economics
What causes an economy to produce a level of output which lies inside the production set?
Economics