Expansionary fiscal policy will
A) shift the aggregate demand curve to the left.
B) shift the aggregate demand curve to the right.
C) shift the short-run aggregate supply curve to the left.
D) not shift the aggregate demand curve.
Ques. 2A country which incurs a current account deficit will most likely have a financial or capital account surplus.
Indicate whether the statement is true or false
Ques. 3How have government policies and programs affected the volatility of the business cycle in the United States since 1950? Explain and provide at least two specific examples of policies or programs that may have had an impact.
What will be an ideal response?
Ques. 4A central bank like the Federal Reserve in the United States can help banks survive a bank run by
A) raising the discount rate. B) acting as a lender of last resort.
C) printing money. D) increasing the required reserve ratio.
Ques. 5If inflation increases unexpectedly, then
A) lenders receive a lower real interest rate than they expected.
B) neither borrowers nor lenders lose.
C) borrowers pay a higher real interest rate than they expected.
D) lenders gain and borrowers gain.
Ques. 6Stagflation occurs when aggregate supply and aggregate demand both increase.
Indicate whether the statement is true or false
Ques. 7The current account balance equals the value of net exports.
Indicate whether the statement is true or false
Ques. 8How are unemployment, inflation, and the business cycle related?
What will be an ideal response?
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