Question

can you answer these

Why is the slow growth that can result from a contractionary policy a positive effect?

It can increase loan interest rates.
It can decrease available credit.
It can increase the money supply.
It can decrease inflation.

If expansionary taxation policies are left unchecked, which is the most likely result?

reduced profits
high inflation
reduced production
reduced disposable income

John Maynard Keynes developed new economic theories in response to the

stock market crash of 1929.
Great Depression of the 1930s.
first and second world wars.
economic boom of the 1950s.

Which statement is most accurate about the hourly pay a worker receives?

It is the rate for each day that is worked.
It often results in lower pay than a salary.
It is a set amount paid over the course of a year.
It often results in higher pay than annual wages.

Which best describes how advertising influences consumer choice in an oligopoly?

Advertising coaxes people to buy new products.
Advertising alerts consumers to price reductions.
Advertising undermines competition.
Advertising informs brand knowledge.

Answer 1

1) It can decrease inflation.
- Contractionary policy (higher interest rates, reduced money supply) slows demand and helps reduce inflation.

2) High inflation.
- Unchecked expansionary tax policies (big tax cuts/increased demand) can overheat the economy and push up prices.

3) Great Depression of the 1930s.
- Keynes developed his ideas to explain and address the prolonged unemployment and low demand of the Great Depression.

4) It often results in lower pay than a salary.
- Hourly pay is paid per hour worked; compared with salaried jobs it often yields lower annual earnings and fewer benefits (though this can vary).

5) Advertising informs brand knowledge.
- In an oligopoly firms use advertising mainly to differentiate products and build brand loyalty rather than competing only on price.