Author Question: If aggregate supply meets aggregate demand in the vertical part of the AS curve, which of the ... (Read 138 times)

Mimi · **on:** Jun 30, 2018

If aggregate supply meets aggregate demand in the vertical part of the AS curve, which of the following is a true statement about expansionary policies?

A) Monetary policy will be more effective in increasing output.
B) Fiscal policy will be more effective in increasing output.
C) Fiscal and monetary policy will be equally effective in increasing output.
D) Both monetary and fiscal policies will only cause prices to increase.

Question 2

Competition between the United States and Mexico is

A) equivalent to the competition between two giant corporations.
B) a struggle over which country will get the best jobs.
C) unfair if wages in Mexico are lower than in the United States.
D) not a meaningful way to analyze trade.