Populist policies are not successful even in the immediate short run at stimulating the economy and creating jobs

Which of the following is likely to arise in a market with asymmetric information?

A) Moral hazard B) A pecuniary externality C) A positive externality D) A prisoners' dilemma

Refer to Figure 16-8. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?

A) decrease government purchases B) increase income taxes C) sell Treasury bills D) increase government purchases