If the economy is experiencing demand-pull inflation, then the appropriate government policy would be to shift the:
a. aggregate demand curve by using a tax increase coupled with spending cuts.
b. aggregate demand curve by using a tax increase coupled with more spending.
c. aggregate demand curve by using a tax cut coupled with spending cuts.
d. aggregate demand curve by using a tax cut coupled with more spending.
e. aggregate supply curve by using a tax cut coupled with spending cuts.
Question 2
The opportunity cost of holding money is properly measured by the rate of interest on financial assets such as bonds.
a. True
b. False
Indicate whether the statement is true or false
This modified model of Easton’s systems theory puts government decision makers as the source of pol
The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p
a) Using the “claw” b) Isometric finger-pull exercise
(A) Massage the ears between thumb and fingers. (B) Gently pull on ears.
American Government: Roots and Reform, AP* Edition, 12th Edition
Types of policy