ECONOMICS

Economics: Question & Answer



Economics: Question & Answer

Potential output is equal to (Points : 1)

along run aggregate demand.

short-run aggregate demand.

short-run aggregate supply.

long-run aggregate supply.

To increase output the government could adopt policies that (Points : 1)

increase aggregate supply and aggregate demand.

The quantity of aggregate output demanded will fall if (Points : 1)

the interest rate is reduced.

the price level increases.

the money supply is increased.

net taxes are reduced.

To increase output the government could (Points : 1)

encourage education and decrease net taxes.

lower payroll taxes and increase government spending.

lower the corporate profits tax and have the Fed buy bonds in the open ...