The Keynesian analysis of fiscal policy argues that:
A. fiscal policy should generally be expansionary except during periods of economic recession.
B. fiscal policy should generally be restrictive except during inflationary booms.
C. the federal budget should be balanced annually except during war.
D. the federal budget should be used to maintain aggregate demand at a level consistent with full employment.
Answer: D
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A. no; remain the same B. an expansionary; decrease C. an expansionary; increase D. a recessionary; increase
Which of the following statements about public education is TRUE?
A. Most of the increases in public spending on public education have gone into programs that have increased student learning. B. Over the last 40 years, there has been a decrease in public spending for public education, while there has not been a significant increase in performance. C. Over the last 40 years there has been no decline in any of the measures of student performance in public education. D. Over the last 40 years, there has been an increase in spending for public education, while there has not been a significant increase in performance.
A reduction in a country's rate of inflation should
A. increase its exports. B. lead to a negative trade balance. C. increase its imports. D. lead to an outflow of SDRs.
An upward-sloping trend line depicts long-run economic growth
Indicate whether the statement is true or false