In 2008, Japan's government approved a $1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result
A) Japan's aggregate demand curve shifted rightward.
B) Japan's aggregate supply curve shifted leftward.
C) Japan's aggregate demand curve shifted leftward.
D) Japan's long-run aggregate supply curve shifted leftward.
A
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A change in the relative price of one good versus another will cause a change in marginal product and the allocation of labor resources. When the price of good A increases relative to the price of good B and labor is mobile, the equilibrium real wage in industry A will:
a. rise in terms of good B. b. fall in terms of good B. c. remain the same. d. rise in terms of good A.
Refer to Figure 16-1. Suppose the economy is in a recession and expansionary fiscal policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) B to A. B) C to B. C) B to C. D) A to B. E) A to E.