Economists who are in favor of smaller government tend to prefer ________________ when expansionary _______________ policy is needed to raise aggregate demand
A) tax cuts; fiscal
B) tax cuts; monetary
C) more government spending; fiscal
D) more government spending; monetary
A
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The most comprehensive measure of aggregate output is
A) gross domestic product. B) net national product. C) the stock value of the industrial 500. D) national income.
In England, a system of established markets, the market overt and fairs, had been established. The purpose was to
(a) provide an organized means for the exchange of produced goods or movable property such as livestock. (b) allow government officials to inspect the quality of the goods and regulate business activities. (c) provide for the legal transfer of title when chattel goods changed hands between buyers and sellers. (d) apply all of the above.
When you throw trash out your car window you are creating a
a. consumption external cost b. production external cost c. consumption external benefit d. production external benefit e. a selfish act
Which of the following describes the relationship between interest rates and interest-sensitive goods, such as housing?
a. As interest rates decline, the demand for interest-sensitive goods increases. b. As interest rates decline, the demand for interest-sensitive goods decreases. c. As interest rates increase, the demand for interest-sensitive goods increases, driving prices upward. d. As interest rates increase, the demand for interest-sensitive goods decreases, driving prices upward.