Discretionary fiscal policy is so named because it:
A. involves specific changes in T and G undertaken expressly for stabilization at the option of Congress.
B. is undertaken at the option of the nation's central bank.
C. occurs automatically as the nation's level of GDP changes.
D. is invoked secretly by the Council of Economic Advisers.
Answer: A
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Which of the following statements is the MOST accurate? The law of one price states
A) in competitive markets free of transportation costs and official barriers to trade, identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency. B) in competitive markets free of transportation costs and official barrier to trade, identical goods sold in the same country must sell for the same price when their prices are expressed in terms of the same currency. C) in competitive markets free of transportation costs and official barrier to trade, identical goods sold in different countries must sell for the same price. D) identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency. E) in competitive markets free of official barrier to trade, identical goods are sold at the same price regardless of transportation costs.
An increase in fixed cost will, in the long run, alter the industry output of
a. both a monopolist and a competitive industry. b. only a monopolist. c. only a competitive industry. d. neither a monopolist nor a competitive industry.
David Ricardo was the author of the 1817 book Principles of Political Economy and Taxation
a. True b. False Indicate whether the statement is true or false
Suppose a new pollution tax of $0.01 per kilowatt-hour of electricity is imposed on coal-fired power producers by the federal government. Which of the following correctly describes how this tax will affect the market for electricity served by these power plants?
a. Demand for electricity will increase. b. Demand for electricity will decrease. c. The supply of electricity will decrease. d. The supply of electricity will increase.