Consider the Following Statement: "President Nixon Expressed Satisfaction with Last

question 138

Multiple Choice

Consider the following statement: "President Nixon expressed satisfaction with last year's economic performance. He said that with inflation and unemployment heading down, the nation 'is on the right course'. " Which of the following could have caused this phenomenon?

• A) Economic agents revising their expectations about the price level resulting in the short-run aggregate supply curve shifting to the left.
• B) Expansionary fiscal and monetary policies that shifted the aggregate demand curve to the right.
• C) Increase in money supply which lowered interest rates and shifted the short-run aggregate supply curve to the right.
• D) Expansionary fiscal and monetary policies that shifted the long-run aggregate supply curve to the right.

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Definitions:

Constitution

The Constitution is a fundamental set of principles and laws that outlines the structure, powers, and duties of a government and the rights of its citizens, serving as the supreme legal authority within a country or organization.

Veto State Laws

A concept pertaining to the principle that the federal government, under certain conditions, can nullify or reject laws passed by state governments, although in practice, such federal veto power is not directly exercised over state laws but through the court system interpreting constitutionality.

James Madison

The fourth President of the United States, hailed as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution and the Bill of Rights.

Congress

The legislature of the United States, consisting of two houses: the Senate and the House of Representatives, responsible for making federal laws.