Discretionary fiscal policy is:
A. fiscal policy that the government actively chooses to adopt.
B. taxes and government spending that affect fiscal policy without specific action from policymakers.
C. fiscal policy that the government enacts only for a short period of time.
D. taxes and government spending that the government actively votes against adoption.
A. fiscal policy that the government actively chooses to adopt.
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When the Fed ________ the money stock, the money supply curve shifts to the ________ and the interest rate ________, everything else held constant
A) decreases; right; rises B) increases; right; falls C) decreases; left; falls D) increases; left; rises
Suppose a consumer advocacy group has convinced legislators that vitamin pills should be free to consumers. Such a policy would enhance the health of the citizenry, they argue
Assuming a downward-sloping linear demand curve and a horizontal long-run supply curve, determine the resulting output and social welfare from such a policy. Compare this result to the competitive equilibrium.
Economists are:
A) concerned with developing theories but not interested in solving problems. B) interested in solving problems but not concerned with developing theories. C) reluctant to predict changes in variables such as prices, employment, and spending. D) not always in agreement on the best way to implement policy decisions.
"Because a firm's supply curve slopes upward, the long-run supply curve of an industry must also slope upward." Do you agree or disagree? Explain
What will be an ideal response?