Refer to the diagram, in which Q f is the full-employment output. An expansionary fiscal policy would be most appropriate if the economy's present aggregate demand curve were at:

If an economy is growing at 2 percent a year but its rate of technology growth is 1 percent a year, then this country must be:

a. below its steady state level of capital per worker. b. expected to grow slower in the future. c. has a savings rate that is too low. d. none of the above.

A decrease in the price of peanuts will cause a leftward shift of the supply curve of peanut butter

a. True b. False