Given AD1 and AS1 in Figure 8.3, the Keynesian approach to achieving a higher level of output would be to
A. Employ an expansionary fiscal policy.
B. Impose price controls.
C. Increase the growth of the money supply to shift AS1 to AS2
D. Do nothing.
Answer: A
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Rapid population growth in Malthus's theory is constrained through:
A) higher fertility and reduced mortality. B) reduced fertility and higher mortality. C) higher fertility and mortality. D) reduced fertility and mortality.
Which of the following statements is true?
a. Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a greater burden on the poor than the rich. b. Government failure may occur if voters are rationally ignorant. c. Government failure may occur because of special-interest group political pressure. d. All of these.