Which of the following is an appropriate fiscal policy prescription for the government to follow?
A. Deficit reduction during a recession.
B. Deficit reduction during a war.
C. Deficit reduction when there is excess AD.
D. Deficit expansion in an inflationary gap.
Answer: C
You might also like to view...
Use the following graph to answer the next question.
If the industry were served by a pure monopoly, the deadweight loss would be the area ________.
A. ACE B. AEF C. ACB D. This can't be determined with the information provided in the graph.
Scarcity is a situation in which resources are unlimited in quantity and can be used in different ways
Indicate whether the statement is true or false
The situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as
A) an interest rate panic. B) the Taylor rule. C) a zero-sum game. D) a liquidity trap.
What does the complete diagram represent, the bottom half and the top half put together?
a. business cycle in general b. the factor market c. circular flow in a free market economy d. household payments for the factors of production