Which of the following is an example of a fiscal stimulus?
A) decrease in transfer payments
B) decrease in taxes
C) decrease in government expenditure on goods and services
D) increase in taxes
E) none of the above
B
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The study of exchange rate determination is a relatively new part of international economics, since
A) for much of the past century, exchange rates were fixed by government action. B) the calculations required for this were not possible before modern computers became available. C) economic theory developed by David Hume demonstrated that real exchange rates remain fixed over time. D) dynamic overshooting asset pricing models are a recent theoretical development. E) the exchange rate never fluctuates.
In a market with 1,000 identical firms, the short-run market supply is the
a. marginal cost curve above average variable cost for a typical firm in the market. b. quantity supplied by the typical firm in the market at each price. c. sum of the prices charged by each of the 1,000 individual firms at each quantity. d. sum of the quantities supplied by each of the 1,000 individual firms at each price.
Which of the following is evidence of an inflationary gap?
A. Very long lines at employment agencies B. Very short waiting times for product delivery C. Very low sales figures D. Very long search times for people looking for jobs E. Very low unemployment rates
Suppose an increase in government spending stimulates real GDP without affecting the price level. What is the relevant range of the aggregate supply curve in this case?
A. the classical range B. the intermediate range C. the Keynesian range D. the monetarist range