When government decides to use fiscal policy:
A. the information for how much to change taxes is readily available.
B. the expedited process of approval aids with quick enactment.
C. it always keeps the economy closer to potential GDP than it otherwise would be.
D. It may take time to implement it.
D. It may take time to implement it.
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Changes in which of the following do NOT shift the AS curve?
i. the price level ii. potential GDP iii. the money wage rate A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Bonnie can produce either 10 hats or 20 scarves in a month. Phil can produce either 5 hats or 10 scarves in a month. Therefore:
A) Phil has a comparative advantage in hats, Bonnie in scarves. B) Bonnie has a comparative advantage in hats, Phil in scarves. C) Phil has a comparative advantage in both hats and scarves. D) Bonnie has a comparative advantage in both hats and scarves. E) Neither of them has a comparative advantage in hats or scarves.
Deflation is bad because:
A. wages decline. B. prices decline. C. monetary policy becomes impotent. D. fiscal policy becomes impotent. E. deflation is not bad.
Who would benefit from an increase in the Consumer Price Index (CPI)?
A. People on fixed incomes B. Wage earners with no cost of living increases C. People who owe other people money D. People who save