Refer to Table 27-4. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be lower than if Congress and the president had taken no action?
A) potential GDP and the inflation rate B) real GDP and the unemployment rate
C) real GDP and potential GDP D) real GDP and the inflation rate
D
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If some non-price level determinant causes total spending to decrease, then the effect on aggregate demand will be a: a. movement upward along the curve
b. movement downward along the curve. c. shift to the left. d. shift to the right.
Which of the following is the main problem with the barter system of exchange?
A. It encourages self-interest B. It fosters the division of labor C. It requires a coincidence of wants D. It undermines the right to bequeath