Which of the Following Statements About Fiscal Policy and Aggregate

question 254

Multiple Choice

Which of the following statements about fiscal policy and aggregate supply is CORRECT?

• A) The focus of fiscal policy and aggregate supply is to minimize unemployment.
• B) Fiscal policies that influence aggregate supply don't always require tradeoffs between price levels and output.
• C) Fiscal policies that influence aggregate supply take less time to work than do demand-side fiscal policies.
• D) Fiscal policies that influence aggregate supply increase inflationary pressures as output expands.

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Definitions:

Capital Contributed

The total value of cash and other assets that shareholders or owners have given to a company in exchange for an ownership interest.

Federal Law

Legislation enacted by the national government of a country, applicable across the entire country.

Premium on Stock

The amount by which the sale price of a stock exceeds its par value, often occurring when investors view the company as having strong future prospects.

Par Value

Par value is a nominal or face value assigned to a share of stock or bond when it is issued, which has little significance today but was historically the legal capital of the share.