Author Question: Consider the following statement: If the government attempts to raise employment through increased ... (Read 143 times)

tnt_battle · **on:** Jun 30, 2018

Consider the following statement: If the government attempts to raise employment through increased fiscal spending, all it will end up doing is increasing the price level. The statement rests on the assumption that:
a. the aggregate demand curve is a horizontal line.
b. the aggregate supply curve is a vertical line.
c. the aggregate supply curve is upward-sloping.
d. the aggregate supply curve is downward-sloping.
e. the aggregate supply curve is a horizontal line.

Question 2

If individuals who sit in the back of the classroom receive lower grades on average than the rest of the class, does that mean that sitting in the back of a classroom causes one to perform poorly on exams?
a. Not necessarily. The reoccurrence of a certain relationship between two variables does not necessarily imply causation.
b. It is not possible for an economist to determine causation between variables.
c. The reoccurrence of such a relationship is sufficient evidence that sitting in the back of a classroom will lead to lower grades.
d. none of the above