Expansionary fiscal policy during a recession is most effective when it
a. creates jobs, even if they are on unproductive projects.
b. directs the economy to full employment and resources into productive projects.
c. substantially changes the composition of aggregate demand.
d. provides members of Congress with large political contributions.
B
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Which of the following is the best description of the production possibilities frontier (PPF)?
a. The PPF is a curve showing alternative combinations of goods that can be produced when available resources are used efficiently. b. The PPF is a curve showing the quantity of a good or service supplied by producers at each price level. c. The PPF is a curve showing the changes in output of a good or service brought about by changes in input usage. d. The PPF is a curve showing the different input combinations used to produce a particular good or service.
cost-push inflation spiral results if the Fed's response to stagflation is to keep
What will be an ideal response?