If the index of leading indicators and other forecasting devices suggested that the economy is moving into an inflationary boom, activists' economic policy would call for
a. a decrease in money supply growth and a tax increase.
b. an increase in money supply growth and a shift toward a budget deficit.
c. an increase in money supply growth and a tax decrease.
d. a continuation of the policies already in place.
A
You might also like to view...
Use the figure below to answer the following question.
If the output level is Q1, then there is missing surplus indicated by the area
A. 0abe. B. ecf. C. 0eQ1. D. bce.
The main difference between stabilization policies and structural reform policies is that stabilization policies
A) focus on microeconomic issues and structural reform policies focus on the macroeconomic environment. B) focus on macroeconomic issues and structural reform policies focus on the microeconomic environment. C) are rarely used by reform governments; they prefer to use structural reform policies in their place. D) have smaller economic impacts than structural reform policies. E) create less unemployment than structural reform policies.
The deadweight loss from monopoly pricing is:
A. the amount by which aggregate surplus falls short of its minimum possible value, which is attained in a perfectly competitive market. B. the amount by which consumer surplus exceeds producer surplus. C. the amount by which aggregate surplus falls short of its maximum possible value, which is attained in a perfectly competitive market. D. the amount by which producer surplus exceeds consumer surplus.
If the price of hot dogs increases, the demand for hot dog buns will
A) increase. B) decrease. C) remain constant. D) shift to the right.