If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in
A) the money supply and a decrease in interest rates.
B) government purchases.
C) oil prices.
D) taxes.
Answer: B
Economics
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If the price level rises by 3 percent and workers' money wage rates increase by 2 percent, then the
A) quantity of labor demanded will decrease. B) quantity of labor demanded will increase. C) quantity of labor demanded does not change because there is no change in the real wage rate. D) real wage rate increases.
Economics
The Economic Freedom of the World index is a measure of the consistency of a nation's institutions and policies with
a. political democracy. b. economic freedom. c. an Egalitarian distribution of income. d. economic nationalism.
Economics