Two events A and B in a sample space are considered _____ if the probability that A will happen is the same regardless of whether or not B has happened

Suppose the government pursues expansionary fiscal policy by lowering taxes. What are the expected demand-side effects? What are the possible offsets to the demand-side effect? How might supply-side effects change these results?

What will be an ideal response?

If the aggregate supply curve is flat,

a. contractionary fiscal or monetary policy will reduce inflation with little effect on real GDP. b. contractionary fiscal or monetary policy will cause significantly less inflation. c. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation. d. expansionary fiscal or monetary policy will add little to real GDP but will increase inflation significantly.