Author Question: Aggregate demandaggregate supply analysis shows that in the long run the effect of increased ... (Read 83 times)

FButt · **on:** Jun 30, 2018

Aggregate demandaggregate supply analysis shows that in the long run the effect of increased aggregate spending on real GDP is:
a. negative.
b. close to infinity.
c. indeterminate.
d. zero.
e. positive.

Question 2

When President Harry Truman said that he wanted to find a one-armed economist because his economic advisors always said, On the one hand... and on the other hand... he recognized that the advice of economists is often open to more than one interpretation. Why is this?
a. Economists cannot make up their minds on policy matters.
b. Economists agree with each other on all policy issues.
c. Economists are aware that tradeoffs are involved in most policy questions.
d. Economists are often unable to identify the critical questions involved in policy issues.