A political leader suggesting that an economic downturn will be cushioned by nondiscretionary fiscal policy is referring to
A. tax policy and spending policy.
B. interest rates and tax rates.
C. interest rates and the money supply.
D. a progressive income tax and a welfare state.
Answer: D
You might also like to view...
The per-worker production function in the Solow model assumes
A) constant returns to scale and increasing marginal productivity of capital. B) constant returns to scale and diminishing marginal productivity of capital. C) increasing returns to scale and diminishing marginal productivity of capital. D) decreasing returns to scale and diminishing marginal productivity of capital.
If the expenditure schedule must be shifted downward to reach potential GDP, then the economy is experiencing a(n)
A. inflationary gap. B. precautionary gap. C. restrictive gap. D. expansionary gap.
The sum of all factor payments in the economy yields
a. gross domestic product. b. national income. c. disposable income. d. net domestic product.
Mechanism design can be used to provide employers and employees with the right incentives in labor markets.
Answer the following statement true (T) or false (F)