Starting from full employment output, fiscal policy will be completely crowded out in real terms, even with __________ LM curve, so long as prices are __________.
A) a vertical; flexible
B) a vertical; fixed
C) an upward-sloping; flexible
D) an upward-sloping; fixed
Correct Answer:
Verified
Q65: The quantity of money demanded increases at
Q72: The quantity of money demanded decreases at
Q73: The natural rate of interest is a
Q74: Suppose that IS and LM intersect at
Q76: Suppose that IS and LM intersect at
Q78: Suppose that IS and LM intersect at
Q79: "A drop in government expenditures lowered output
Q80: When the economy is at full employment
Q81: The economy tends to be less stable
Q82: The amount of investment demand at each
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents