Multiple Choice
Expansionary fiscal policy can be used to reduce unemployment by
A) increasing long-run aggregate supply so as to raise real GDP.
B) increasing aggregate demand so as to raise real GDP.
C) reducing nominal wages so as to encourage firms to hire more workers.
D) eliminating inefficiencies from labor markets.
Correct Answer:

Verified
Correct Answer:
Verified
Q17: According to New Keynesian economists<br>A) activist policy
Q41: In the short run, unanticipated inflation typically
Q60: From 1950 until the late 1980s, the
Q78: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above
Q88: Based on the work of economist A.W.
Q95: The idea that anticipated monetary policy changes
Q97: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5016/.jpg" alt=" -In the above
Q253: Those who favor passive policymaking argue that
Q263: An example of nondiscretionary policymaking is<br>A) a
Q287: The hypothesis suggesting that people combine the