Marginal utility is the extra utility a consumer derives from consuming an extra unit of a good

Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy

If the effect on aggregate supply was larger than the figure above shows, as a result the price level would be ________ 110 and real GDP would be ________ $17 trillion. A) equal to; equal to B) equal to; larger than C) higher than; larger than D) smaller than; less than E) smaller than; larger than

If the time for an economy to self-correct is shorter than the active policy lags, then:

a. active policy should be strengthened b. active policy is likely to destabilize the economy. c. time is required to accumulate evidence that the economy is performing below its potential. d. the aggregate demand curve shifts more rapidly than the short-run aggregate supply curve. e. active policy will work better than passive policy.