Which of the following is a policy option to eliminate an AD shortfall?
A. Reduce taxes.
B. Reduce transfer payments.
C. Decrease government purchases.
D. All of the choices are correct.
Answer: A
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The increase in stock prices in 2009 and 2010 was
A. the result of an elaborate conspiracy by greedy manipulators to ruin the Big Three automakers. B. a consequence of the rebound of those years. C. largely due to the sharply increased uncertainty regarding the strategically-critical financial sector. D. totally irrational and unjustified by any fundamental determinants of stock values.
If demand is elastic and the price of a product decreases by 100 percent, then
A. the decrease in quantity demanded is greater than 0 percent. B. the change in quantity demanded is greater than 100 percent. C. the change in quantity demanded is equal to 100 percent. D. the change in quantity demanded is less than 100 percent.