A fiscal policy in which the government attempts to offset any change in aggregate expenditures that would create a business cycle is called a:
A. supply-side policy.
B. countercyclical fiscal policy.
C. laissez-faire policy.
D. regulatory policy.
Answer: B
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Two countries, Baltonia and Polonia, have aggregate production functions of the form:
Y = A × K1/3 × H2/3 Both countries have the same number of efficiency units of labor and use the same technology. However, Baltonia has a lower capital stock than Polonia. Which of the following is likely to be true in this case? A) The poverty rate in Baltonia is lower than that in Polonia. B) The gross domestic product of Baltonia is lower than that in Polonia. C) The gross domestic product of Baltonia is higher than that in Polonia. D) The Human Development Index of Baltonia is higher than that of Polonia.
The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point d would be the result of
A) an increase in technology. B) a decrease in the relative price of a soft drink. C) an increase in the relative price of a soft drink. D) an increase in the number of soft drink suppliers.
Describe the three ways that banks normally earn revenue
What will be an ideal response?
Refer to the above figure. Which of the following statements about panel D in the figure is TRUE?
A) The figure represents a long-run equilibrium for a monopolistic competitor. B) The figure represents an industry long-run equilibrium for monopolistic competition. C) The figure is in error since it doesn't show the monopolistic competitor making profits in the long run. D) The figure is in error since it has marginal cost intersecting the ATC curve at a point other than the minimum of ATC.