Even when two goods are perfect substitutes one can sell at a premium over the other depending on the tastes and preferences of the consumers

Which of the following demonstrates the ideal use of expansionary fiscal policy?

A. The government slowly hires unemployed workers and puts them to work on permanent projects that continue long after the economy recovers. B. The government quickly hires already-employed workers and puts them to work on projects that are finished as the economy recovers. C. The government quickly hires unemployed workers and puts them to work on projects that are finished as the economy recovers. D. The government quickly hires unemployed workers and puts them to work on permanent projects that continue long after the economy recovers.

Everything else held constant, if aggregate output is to the right of the IS curve, then there is an excess ________ of goods which will cause aggregate output to ________

A) supply; fall B) supply; rise C) demand; fall D) demand; rise