If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) government purchases.
B) the money supply and a decrease in interest rates.
C) taxes.
D) oil prices.
A
Economics
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Compared to the natural rate of unemployment, the actual unemployment rate is
A) always lower. B) always higher. C) always the same. D) higher in periods when GDP fails to grow at its normal rate.
Economics
Why are economic theories and principles imprecise? Shouldn’t they apply to everyone?
Please provide the best answer for the statement.
Economics