If the U.S. Congress passes legislation to raise taxes to control demand-pull inflation, then this would be an example of a(n)
A. supply-side fiscal policy.
B. contractionary fiscal policy.
C. expansionary fiscal policy.
D. nondiscretionary fiscal policy.
Answer: B
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Use the following table for a certain product's market in Marketopia to answer the next question.Quantity Demanded DomesticallyPriceQuantity Supplied Domestically1,400$102,2001,60092,0001,80081,8002,00071,6002,20061,4002,40051,200Assume the small-country model is applicable. If the world price of the product is $6 and an import quota of 400 units is imposed on the product, then the equilibrium price in Marketopia would be ________ and the total quantity available in Marketopia would be ________ units.
A. $7; 1,800 B. $6; 1,800 C. $6; 2,200 D. $7; 2,000
Real GDP in the country of Oz is growing at 5 percent and its population is growing at 2 percent. In the country of Lilliput, real GDP is growing at 4 percent and its population is growing at 0.5 percent. Thus,
A) real GDP per person in Oz is growing at a faster rate than in Lilliput. B) real GDP per person in Lilliput is growing at a faster rate than in Oz. C) real GDP per person in Lilliput is growing at the same rate as in Oz. D) real GDP per person in Lilliput is growing at a rate that is not comparable to that in Oz. E) We need more information to determine if real GDP per person in Lilliput is growing faster or slower than real GDP per person in Oz.
Which of the following is an example of a transfer payment?
a. wages and salaries paid to the employees of the Internal Revenue Service b. purchase of automobiles by a local police department c. agriculture subsidies paid to farmers d. salaries paid to the college professors of state-operated universities
An increase in the price of product B leads to an increase in the demand for product C. This indicates that products B and C are:
A. Complementary goods B. Substitute goods C. Inferior goods D. Normal goods