One way fiscal policy affects aggregate demand is:

A. indirectly through government spending.
B. directly through tariffs.
C. directly through taxation.
D. indirectly through taxation.


D. indirectly through taxation.

Economics

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Which of the following shifts the supply curve of rutabagas rightward? (A rutabaga is a potato-like vegetable.)

A) an increase in the price of a rutabaga B) an exceptionally cold summer that killed much of the rutabaga crop C) a fall in the price of fertilizer used to grow rutabagas D) Both answers A and C shift the supply curve of rutabagas rightward. E) Both answers A and B shift the supply curve of rutabagas rightward.

Economics

A Pigovian tax imposed on consumers ___________ the price, and if the same tax were imposed on producers, it would _____________ the price.

A. increases; decrease B. decreases; increase C. increases; increase D. decreases; decrease

Economics

Guns and butter are used to represent the classic societal tradeoff between spending on

a. durable and nondurable goods. b. imports and exports. c. national defense and consumer goods. d. law enforcement and agriculture.

Economics

If the multiplier in the economy is 3, the marginal propensity to save (MPS) must be

A. 3. B. 0.67. C. 0.33. D. 1.

Economics