Policymakers following a "lean against the wind" policy would
a. increase government expenditures when output is low and decrease them when output is high.
b. increase government expenditures when output is low and do nothing when output is high.
c. decrease government expenditures when output is low and increase them when output is high.
d. decrease government expenditures when output is high and do nothing when output is low.
a
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If the demand for loanable funds curve shifts rightward from the curve shown in the figure above, the shift could be the result of
A) a rise in the real interest rate. B) a decrease in expected profit. C) a fall in the real interest rate. D) an increase in expected profit. E) a decrease in real GDP. The figure above shows the supply of loanable funds curve.
The intermediate range of the aggregate supply curve is the portion where:
a. The average price level and real GDP do not change with movements in aggregate demand. b. Real GDP does not change with movements of aggregate demand, but the average price level does change. c. The average price level does not change with movements of aggregate demand, but real GDP does. d. The average price level and real GDP change with movements in aggregate demand.