To stabilize the economy

To maximize economic growth

To reduce unemployment

To control inflation

They are positively correlated

They are negatively correlated

They are independent of each other

They are inversely correlated

To set interest rates

To regulate banks

To manage the money supply

All of the above

Real GDP includes inflation, while nominal GDP does not

Nominal GDP includes inflation, while real GDP does not

Real GDP is adjusted for population growth, while nominal GDP is not

Nominal GDP is adjusted for population growth, while real GDP is not

The increase in output resulting from an increase in government spending

The increase in output resulting from an increase in investment

The increase in output resulting from an increase in exports

All of the above

Fiscal policy uses government spending and taxes to influence the economy, while monetary policy uses interest rates to influence the economy

Fiscal policy uses interest rates to influence the economy, while monetary policy uses government spending and taxes to influence the economy

Fiscal policy is used to control inflation, while monetary policy is used to control unemployment

Monetary policy is used to control inflation, while fiscal policy is used to control unemployment

It determines the level of output and employment in the economy

It determines the level of prices in the economy

It determines the level of interest rates in the economy

It determines the level of investment in the economy

Short-run aggregate supply is upward sloping, while long-run aggregate supply is vertical

Short-run aggregate supply is vertical, while long-run aggregate supply is upward sloping

Short-run aggregate supply is horizontal, while long-run aggregate supply is upward sloping

Short-run aggregate supply is upward sloping, while long-run aggregate supply is horizontal

They are positively correlated

They are negatively correlated

They are independent of each other

They are inversely correlated

It increases the efficiency of production

It increases the quantity of inputs

It increases the quality of inputs

All of the above

A recession is a prolonged economic downturn, while a depression is a severe economic downturn

A recession is a severe economic downturn, while a depression is a prolonged economic downturn

A recession is characterized by a decline in output, while a depression is characterized by a decline in employment

A recession is characterized by a decline in employment, while a depression is characterized by a decline in output

It can be used to improve the balance of payments

It can be used to promote economic growth

It can be used to reduce unemployment

All of the above

In a fixed exchange rate regime, the central bank intervenes in the foreign exchange market to maintain a fixed exchange rate, while in a floating exchange rate regime, the central bank does not intervene

In a fixed exchange rate regime, the central bank does not intervene in the foreign exchange market to maintain a fixed exchange rate, while in a floating exchange rate regime, the central bank intervenes

In a fixed exchange rate regime, the exchange rate is determined by the market, while in a floating exchange rate regime, the exchange rate is determined by the central bank

In a fixed exchange rate regime, the exchange rate is determined by the central bank, while in a floating exchange rate regime, the exchange rate is determined by the market

It can be used to improve the standard of living

It can be used to promote economic growth

It can be used to reduce poverty

All of the above