This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Fiscal policy is likely to fail to correct stagflation in an economy because: a. it affects both ... (Read 26 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
on: Jun 30, 2018
Fiscal policy is likely to fail to correct stagflation in an economy because:
 a. it affects both aggregate demand and supply, although only aggregate supply needs to be changed.
 b. it affects both the aggregate demand and supply, although only aggregate demand needs to be changed.
  c. it affects aggregate demand only, although aggregate supply needs to changed.
 d. it affects aggregate supply only, although only aggregate demand needs to be changed.
 e. it affects either aggregate demand or aggregate supply, although both need to be changed simultaneously.

Question 2

The existence of the underground economy causes gross domestic product (GDP) statistics to _____.
 a. understate the true volume of economic activity
  b. overstate the aggregate price level in the economy
  c. overstate the standard of living
 d. overstate the profit of firms
 e. understate government spending in an economy


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

swimkari

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

a


mcmcdaniel

  • Member
  • Posts: 550
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

Missbam101

  • Member
  • Posts: 341
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
Headsets are ergonomically correct and allow the medical assistant or receptionist to use both hands Headsets are ergonomically correct and allow the medical assistant or receptionist to use both hands
Celiac disease affects the small intestine. Celiac disease affects the small intestine.
Creating a Continental Economy Creating a Continental Economy
How the Distribution of Education Affects the Distribution of Income How the Distribution of Education Affects the Distribution of Income
Using the measuring device to give the correct dose to children Using the measuring device to give the correct dose to children
Video: Wound Repair Animation

For a complete list of videos, visit our video library