When trying to increase aggregate demand during a period of serious unemployment,
a. monetary and fiscal policies are likely to be equally effective.
b. monetary policy is likely to be more effective than fiscal policy.
c. fiscal policy is likely to be more effective than monetary policy.
d. laissez-faire policy is likely to be most effective.
c. fiscal policy is likely to be more effective than monetary policy.
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Should European nations which are not currently using the euro choose to adopt the euro as their currency, these countries would risk giving up the ability to use ________ to stabilize their economies in the event of a recession
A) contractionary fiscal policy B) expansionary monetary policy C) expansionary fiscal policy D) contractionary monetary policy
An increase in the unemployment rate may be represented as a movement from a point on the production possibilities frontier to a point inside the frontier
Indicate whether the statement is true or false