Fiscal policy will affect prices and interest rates but not the level of output if
A: the AD-curve is vertical
B: the AS-curve is vertical
C: the AD-curve is horizontal
D: the AS-curve is horizontal
E: both A) or D)
A: the AD-curve is vertical
B: the AS-curve is vertical
C: the AD-curve is horizontal
D: the AS-curve is horizontal
E: both A) or D)
举一反三
- The best no-trade point for a country on an increasing cost production possibilities curve is where: ( ) A: the curve touches the vertical axis. B: the curve touches the horizontal axis. C: the origin. D: the curve touches the highest indifference curve.
- AS曲线，AD曲线（AS curve，AD curve）
- vertical curve
- Cutting income tax rates will most likely cause A: a large shift in the AD-curve but a small shift in the AS-curve B: a small shift in the AD-curve but a large shift in the AS-curve C: a large increase in output resulting in a large increase in tax revenues D: a budget deficit so large that income growth is no longer possible E: both B) and C)
- 49. Expansionary fiscal policy will cause the IS curve to shift to the right.