In the aggregate demand and supply model, the:
a. vertical axis measures the average price level.
b. horizontal axis measures real GDP.
c. aggregate supply curve is vertical at full-employment real GDP.
d. All of these.
d
Economics
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Education would be considered investments in:
a. physical capital b. financial capital c. human capital d. all of the above
Economics
Assume the economy is operating below full employment. Which of the following policy actions will allow aggregate spending to increase but will not increase the size of the government in the process?
A. Increase government spending and leave tax rates unchanged. B. Decrease government spending by more than an increase in taxes. C. Decrease tax rates and leave government spending unchanged. D. Increase government spending and taxes by the same amount.
Economics