Typical goals for fiscal policy are
A. high employment and price stability.
B. running high deficits and raising consumer prices.
C. high prices for consumers and low prices for businesses.
D. increasing the money supply so the government can spend more.
Answer: A
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Suppose that a perfect-maximizing monopolist operates with a horizontal marginal cost curve and no fixed costs. Which of the following would NOT be represented as part of the area between its demand curve and marginal cost curve?
A) total costs B) economic profits C) consumer surplus D) deadweight loss
A depression can be defined as: a. a mild reduction in total production coupled with a rising unemployment rate that lasts for several years. b. a mild decline in total production that lasts less than six months
c. a severe fall in stock prices that causes financial panic and lasts for several years. d. a severe reduction in total production coupled with high unemployment that lasts for several years. e. a decline in government spending and taxes that lasts for several months.
If people use quartz as a medium of exchange, then they: a. have a barter economy
b. are using commodity money. c. are using token money. d. are using legal tender. e. are using fiat money.
Figure 10-6
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In Figure 10-6, which graph best illustrates an autonomous increase in consumption spending?
A. (1) B. (2) C. (3) D. (4)