Fiscal policy refers to the:
A. deliberate changes in government spending and taxes to stabilize domestic output,
employment, and the price level.
B. deliberate changes in government spending and taxes to achieve greater equality in the
distribution of income.
C. altering of the interest rate to change aggregate demand.
D. fact that equal increases in government spending and taxation will be contractionary.
A. deliberate changes in government spending and taxes to stabilize domestic output,
employment, and the price level.
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List five major economic activities of government, and give an example of each.
What will be an ideal response?
_____ refers to an enforceable set of promises to take certain actions over the future
a. A bond b. A contract c. A capitation fee d. A collusion
In the circular flow model of the market system, households:
A. Buy products and resources B. Sell products and resources C. Buy products and sell resources D. Sell products and buy resources
The increase in total cost that results from producing one more unit of output is the marginal cost.
Answer the following statement true (T) or false (F)