Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?

Related Mcqs:

Those who hold the classical view of the labor market are likely to believe that ?

A. neither monetary nor fiscal policy will have an effect on output and employment B. monetary but not fiscal policy will have an effect on output and employment C. Fiscal, but not monetary policy will have an effect on output and employment D. both monetary and fiscal policy will have an effect on output and … Those who hold the classical view of the labor market are likely to believe that ?Read More...

The equilibrium inflation rate is determined by the intersection of _____ and _____?

A. demand, supply B. IS, LM C. AD, AS D. Labor demand, labor supply...

Possible causes of involuntary unemployment are ?

A. minimum wage agreements B. trade C. scale economies D. insider-outsider distinctions E. efficiency wages F. all of the above...

The classical view of the labor market is basically consistent with the assumption of _________ aggregate supply curve?

A. a vertical (or almost vertical) B. a downward sloping C. a horizontal (or almost horizontal) D. an upward sloping...

The AD schedule indicates that _______ inflation is associated with ________ output?

A. higher, lower B. higher, higher C. lower, lower D. zero, zero...