1. Consider discretionary fiscal policies. If we look at the direction of these policies, we must...

1. Consider discretionary fiscal policies. If we look at the direction of these policies, we must be careful not to only examine changes in actual budget deficits or surpluses because

A. these changes may reflect changes in revenues as a result of the change in gross domestic product.

B. All of the other answers are incorrect

C. these changes may reflect the changes in government revenues as a result of the change in exports.

D. these changes include a general price level effect.

E. it is impossible to calculate theses.

2.

Emma wants to know more about aggregate demand. Which of the following is correct?

A. The things that determine aggregate demand show why GDP and the price level are related.

B. The things that determine aggregate demand explain aggregate supply.

C. The things that determine aggregate demand helps to understand why the aggregate demand curve has a negative slope

D. The things that determine aggregate demand explain upward and downward shifts in aggregate demand curve.

E. All of the other answers are incorrect

Expert Solution

Rahul Sunny answered 2 years ago

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