Discretionary fiscal policy is best described as
A) a deliberate attempt to cause the economy to move to full employment and price stability more quickly than it might otherwise.
B) a deliberate attempt to improve the functioning of free markets.
C) an automatic change in income transfer payments to keep the economy at full employment.
D) the design of a tax system that automatically stabilizes economic activity over time.
Answer: A) a deliberate attempt to cause the economy to move to full employment and price stability more quickly than it might otherwise.
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A) heavy; banking B) heavy; markets C) little or no; banking D) little or no; markets
Even if there are significant barriers to entry, firms may not be highly profitable
a. Substitute product offerings among rivals b. The ability of consumers to switch to substitute products easily c. All of the above d. None of the above
Last year real GDP per person in the imaginary nation of Olympus was 4,250 . The year before it was 4,100 . By about what percentage did Olympian real GDP per person grow during the period?
a. 1.6 percent b. 2.5 percent c. 3.7 percent d. 6 percent
What is Wendy’s opportunity cost to produce 3 yards of cloth?
a. 6 pounds of food
b. 4 pounds of food
c. 2 pounds of food
d. 1 pound of food