Question

Which of the following statements would be inconsistent with Say's law? 

A given value of supply must create an equivalent value of demand in the economy 

The economy has flexible prices and wages. 

The best way to foster an economy is through government stimulus spending

The country of Botalava hired Gustav to assist with government policies regarding the macroeconomy. Gustav is a neoclassical economist and makes all decisions based on that economic philosophy. What policies will Gustavo tell the government to enact in order to foster a health economy? 

Policies should be set up to keep inflation low and maintain low tax levels over the long run. 

Policies should be set up to regulate wages and unions, and set price floors and ceilings for specific fundamental goods. 

Policies should be set up to increase production output through regulating sales of resources and strictly monitor exports and imports

Which of the following factors are excluded from shifting the aggregate demand curve? 

high consumer confidence 

an increase in the price level 

increased defense spending 

a cut in personal income tax rates

Answer 1

1 nt which Shau the the best-to -ch 沁よ th ecancmic thflabhun (AD)