The goal of monetary policy and fiscal policy is to
A) offset the shifts in aggregate demand and thereby eliminate unemployment.
B) offset shifts in aggregate demand and thereby stabilize the economy.
C) enhance the shifts in aggregate demand and thereby create fluctuations in output and employment.
D) enhance the shifts in aggregate demand and thereby increase economic growth
Correct Answer:
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Q2: Which of the following claims concerning the
Q3: Shifts in the aggregate-demand curve can cause
Q7: The idea that a decrease in the
Q8: According to John Maynard Keynes,
A)the demand for
Q9: The interest-rate effect
A)depends on the idea that
Q10: With respect to their impact on aggregate
Q12: The wealth effect helps explain the slope
Q13: Which particular interest rate(s)do we attempt to
Q105: Fiscal policy affects the economy
A)only in the
Q117: Shifts in aggregate demand affect the price
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