Which of these statements about fiscal policy is correct?
A. Fiscal restraint is implemented when the economy is experiencing high unemployment.
B. Fiscal stimulus is implemented when the economy is experiencing high inflation.
C. The goal of fiscal policy is to match aggregate demand with full employment potential.
D. All of these statements are correc
C. The goal of fiscal policy is to match aggregate demand with full employment potential.
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Marginal utility
A) characterizes things of little use. B) is the additional utility derived from the last unit of a good consumed. C) is an implication of the law of demand. D) is always negative when total utility is positive and positive when total utility is negative.
Can a country have a trade deficit forever?
What will be an ideal response?
Domestic aggregate surplus:
A. is the sum of consumer surplus, deadweight loss and government revenue. B. is the sum of domestic producer surplus and government revenue. C. is the sum of domestic producer surplus and consumer surplus. D. is the sum of consumer surplus, domestic producer surplus and government revenue.
In a closed economy, national savings is:
A. the sum of the savings of individuals and corporations plus the savings of the government. B. the sum of public savings plus private savings. C. equal to national investment. D. All of these are true.