Procyclical policy:
What will be an ideal response?
fiscal policy in which taxes are lowered and expenditure is raised when the economy is strong, and the opposite is done when the economy is weak
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A person who organizes and assumes the risks of a business venture is called a(n)
a. capitalist. b. manager. c. labor leader. d. entrepreneur.
In the simple accelerator model, if expected output declines,
A) gross investment becomes negative. B) net investment becomes negative. C) both gross investment and net investment become negative. D) the desired stock of capital will become negative.
If the real interest rate is 5 percent and the inflation rate is 2 percent, then the nominal interest rate is 7 percent
a. True b. False Indicate whether the statement is true or false
If demand is __________ and price is __________, total revenue will _________.
A. inelastic; raised; increase B. inelastic; lowered; decrease C. elastic; raised; decrease D. All of these options are true