<span>The price level would be lower than would otherwise have occurred.
Since the economy is a inflation gap </span><span>input prices will eventually increase in the
absence of any fiscal policy, causing the price level to rise and output to fall back to potential
output. The contractionary fiscal policy will reduce aggregate demand and lower output to
potential output while at the same time lowering the price level. Thus the only difference
<span>between the two is a lower price level with the contractionary fiscal policy.</span></span>
The answer is B. Blueprints for a house. Hope it help
Answer:
c. generates income
Explanation:
International trade for a country refers to exchange of goods and services beyond geographical boundaries. In short international trade refers to the business due to import and export of goods.
For example, one nation might specialize in the production of cocoa while another nation is rich in oil wells or oil reserves. The two nations can trade such resources and eliminate scarcity or abundance.
International trade leads to increased competition in the domestic market since now the producers are compelled to adhere to meet international quality standards for their products.
So, International trade generally c. generates income.
Answer:
D) M1 falls by $1,000, and M2 is unchanged.
Explanation:
since checking account comes under M1, a transfer would result in fail, Therefore, a transfer would result in a change in M1 but shows no effect on M2
