The government's fiscal policy is its plan to regulate aggregate demand by manipulating:
a. the money supply
b. taxation and government purchases.
c. the treasury.
d. the energy department.
b
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The price level is:
A. a measure of overall prices at a particular point in time. B. the price of a specific good in comparison to the prices of other goods and services. C. the percentage change in a price index such as the CPI. D. the rate of inflation.
If a pair-wise majority vote was held and the voters' preferences are in the given table, which option would win the first round of voting?
A. Public transportation
B. Public zoo
C. Public parks
D. It depends on which pair was considered first.
The political business cycle refers to the possibility that:
a. incumbent politicians will be reelected regardless of the state of the economy. b. politicians will manipulate the economy to enhance their chances of being reelected. c. there are more recessions prior to elections. d. recessions coincide with election years.
As the real interest rate in the domestic loanable funds market increases,
a. the cost of purchasing goods and services during the current period will decrease. b. the net inflow of capital from abroad will increase. c. the inflationary premium will rise and the money rate of interest will decline. d. a trade surplus will occur.