Consider the following statement: If the government attempts to ...

[tnt_battle]

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

[eliasc0401]

Answer to Question 1

b

Answer to Question 2

a

[tnt_battle]

Gracias!

[mohan]

Excellent