quiz 11 chapter 11 solutions

quiz 11 chapter 11 solutions - Self-Test Questions Chapter...

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Self-Test Questions Chapter 11 MULTIPLE CHOICE 1. If policymakers expand aggregate demand, a. in the long run, prices will be higher and unemployment will be lower. b. in the long run, prices will be higher and unemployment will be unchanged. c. in the long run, inflation and unemployment will be unchanged. d. None of the above is correct. ANS: B 2. In the long run, the inflation rate depends primarily on a. the ability of unions to raise wages. b. government spending. c. the money supply growth rate. d. the monopoly power of firms. ANS: C 3. Expansionary fiscal policy consists of: a. increased government purchases, increased taxes, increased transfer payments. b. decreased government purchases, decreased taxes, decreased transfer payments. c. increased government purchases, increased taxes, decreased transfer payments. d. increased government purchases, decreased taxes, increased transfer payments. ANS: D
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This note was uploaded on 03/30/2011 for the course ECON 2200 taught by Professor N/a during the Fall '10 term at Algonquin College.

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quiz 11 chapter 11 solutions - Self-Test Questions Chapter...

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