The price of imported oil rises. If the government wanted to stabilize output, which of the following could it do?

a. increase government expenditures or increase the money supply
b. increase government expenditures or decrease the money supply
c. decrease government expenditures or increase the money supply
d. decrease government expenditures or decrease the money supply

a

Economics

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In the first half of 2011, automobile sales in the United States were lower than they were in the first half of 2010

The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses. A) consumption; investment B) investment; consumption C) durable goods; nondurable goods D) nondurable goods; durable goods

Economics

Based on our understanding of the paradox of saving, we know that a reduction in the desire to save will cause

A) an increase in equilibrium GDP. B) a reduction in GDP. C) an increase in the desire to invest. D) no change in equilibrium GDP. E) a permanent reduction in the level of saving.

Economics