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:

St. Louis World's Fair

An international exposition held in 1904 in St. Louis, Missouri, also known as the Louisiana Purchase Exposition, celebrating the centennial of the Louisiana Purchase.

American Expansion

The historical growth of the United States territorially across North America and overseas, from colonial times through the 19th and early 20th centuries.

Thomas Jefferson

The third President of the United States (1801–1809), principal author of the Declaration of Independence, and a founding father of the nation.

European Powers

Countries in Europe with significant political, military, or economic influence.