If the economy was about to enter an inflationary boom, which of the following would be the most appropriate policy?
a. A tax increase.
b. A decrease in government spending.
c. An increase in government spending.
d. A tax decrease.
a
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If the real gross domestic product (GDP) for the base year is $4 trillion, then the nominal gross domestic product (GDP) for that year is _____
a. ?$.04 trillion b. $0.4 trillion c. $4 trillion d. $40 trillion e. $400 trillion
The halfway-point between the buyer's valuation and the seller's opportunity cost is:
a. sometimes a focal point. b. where the two parties invariably agree to transact. c. outside the core. d. inside the utility possibility frontier.
Scarcity and choice are the basic problems of economics; the supply and demand mechanism is the basic investigative tool of economics
a. True b. False Indicate whether the statement is true or false
For a normal good, an expected increase in income would: a. shift demand to the right
b. shift demand to the left. c. increase the slope of the demand curve. d. decrease the slope of the demand curve.