The government might increase its spending to end a recession because:
A. allowing the short-run aggregate supply to adjust since back to the long-run can take a long time.
B. the economy experiences lower prices at the long-run equilibrium.
C. the economy enjoys a higher level of output in the long run.
D. None of these justify why the government might change its spending to end a recession.
A. allowing the short-run aggregate supply to adjust since back to the long-run can take a long time.
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According to the text, approximately what percentage of U.S. net public debt is held by foreign residents?
A) 50% B) 20% C) 90% D) 800%
As a result of moral hazard
A) both physicians and hospitals order more procedures. B) physicians and hospital administrators have no incentive to raise costs. C) patients increasingly have to worry about the expense of operations and other medical procedures. D) both physicians and hospitals have a financial interest in trying to keep hospital costs down.