Which of the Following Influence the Slope of the Policy

question 12

Multiple Choice

Which of the following influence the slope of the policy frontier?

• A) How effective fiscal policy is in manipulating actual GDP in the short run without generating price and wage effects
• B) The degree to which adjustments in fiscal policy designed to manipulate actual GDP in the short run are reflected in changes in prices and wages
• C) How effective monetary policy is in manipulating actual GDP in the short run without price and wage effects
• D) The degree to which adjustments in monetary policy designed to manipulate actual GDP in the short run are reflected in changes in prices and wages
• E) Any, and perhaps all, of the above depending on circumstances

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Definitions:

Limited Risk

Exposure to a relatively small possibility of loss or less severe consequences in an investment or business activity.

Assets

Resources owned by a business or individual that have economic value and can provide future benefits.

Supplies

Items used in the operation of a business or part of inventory not yet sold.

Equipment

Tangible property owned by a business used in its operations over an extended period.