Discretionary fiscal policy refers to:
A. any change in government spending or taxes that destabilizes the economy.
B. the authority that the president has to change personal income tax rates.
C. intentional changes in taxes and government expenditures made by Congress to stabilize
the economy.
D. the changes in taxes and transfers that occur as GDP changes.
C. intentional changes in taxes and government expenditures made by Congress to stabilize
the economy.
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Purchasing power parity prices are used to construct GDP data that
A) do not omit the underground economy. B) can be used to make more valid comparisons between one country and another. C) is a proper measure of economic welfare. D) adjust for differences in population.
Variable costs increase when output rises.
Answer the following statement true (T) or false (F)
In the classical model, which of the following is treated as independent of the interest rate?
a. the quantity of loanable funds demanded by government b. the quantity of loanable funds demanded by businesses c. the total quantity of loanable funds demanded d. household saving e. the total quantity of loanable funds supplied
If the demand for a product decreases, then we would expect equilibrium price
a. to increase and equilibrium quantity to decrease. b. to decrease and equilibrium quantity to increase. c. and equilibrium quantity to both increase. d. and equilibrium quantity to both decrease.