The new classical model implies that a
a. budget surplus will effectively retard inflation emanating from excess demand.
b. budget deficit will increase the real interest rate.
c. substitution of debt for tax financing will leave aggregate demand and real output unchanged.
d. planned budget deficit will be a highly effective tool to combat a recession.
C
Economics
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Reaching an efficient bargain is difficult when the
a. externality is large. b. number of interested parties is large. c. externality is negative. d. government becomes involved.
Economics
Other things the same, if the long-run aggregate supply curve shifts right, prices
a. and output both increase. b. and output both decrease. c. increase and output decreases. d. decrease and output increases.
Economics