An expansionary fiscal policy shifts the aggregate demand curve
A) to the right and is used to close an inflationary gap.
B) to the right and is used to close a recessionary gap.
C) to the left and is used to close an inflationary gap.
D) to the left and is used to close a recessionary gap.
Ans: B) to the right and is used to close a recessionary gap.
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The existence of money in an economy promotes efficiency by
A) facilitating trade, thereby allowing for greater specialization. B) allowing for the formation of corporations as legal entities. C) creating incentives to be self-sufficient. D) creating an equal distribution of income.
If an employer could really hire women who were willing and able to do the same work as men for 20 percent less, profit-seeking employers would have
a. a strong incentive to hire more women, which would shrink this differential. b. little incentive to hire women, since hiring men would still be more profitable. c. a strong incentive to hire fewer women, and this would reduce the wage gap between men and women. d. a strong incentive to hire fewer women, which would expand the wage gap between men and women to an even higher level.