Refer to Figure 16-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely
A) increase government spending.
B) decrease government spending.
C) increase oil prices.
D) lower interest rates.
E) increase taxes.
A
You might also like to view...
Which one of the following statements regarding transferable pollution permits is false?
a. An equilibrium permit price will be obtained through the trading of permits b. Polluting firms generally prefer emissions standards to a system of tradable permits c. A system of tradable permits was set up under the 1990 Clean Air Act Amendments d. A system of tradable permits could be used to help reduce carbon dioxide emissions e. A system of tradable permits achieves a given level of pollution reduction at the lowest cost
When diminishing marginal utility sets in, total utility must be negative
Indicate whether the statement is true or false