During the Great Depression of the 1930s, the aggregate demand curve intersected the aggregate supply curve in the:
a. horizontal portion of the aggregate supply curve.
b. upward-sloping part of the aggregate supply curve.
c. vertical portion of the aggregate supply curve.
d. early years in the horizontal portion, but in the later years in the vertical portion.
e. early years in the vertical portion, but in the later years in the horizontal portion.
a
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If the absolute price elasticity of demand is 2.0, a 5 percent decrease in price will increase quantity demanded by
A) 10 percent. B) 20 percent. C) 25 percent. D) 5 percent.
Simplifying the budget document by concentrating only on major groupings and eliminating line items would: a. ensure that cabinet members spend more time on administering an approved budget and defending a proposed budget. b. require longer-term economic forecasts that are difficult to obtain
c. prevent elected officials from including projects they prefer for their personal gains in the budget. d. increase the flexibility of the discretionary fiscal policy implemented by the federal government. e. require shorter-term economic forecasts that are easy to obtain.