Fiscal policy is the management of aggregate demand through changes in taxes and government spending
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. Kyle's ideal mixture is to
A) "shoot 1" every time since he is the "odd" player. B) "shoot 2" every time since Stan is the "even" player. C) "shoot 1" 50% of the time and "shoot 2" 50% of the time. D) Kyle's ideal mixture depends on Stan's ideal mixture.
XYZ Corporation operates in a perfectly competitive market and is currently maximizing profit. To keep the firm's costs low, XYZ's managers have decided to dump waste in a nearby river
Explain why the level of output currently produced by XYZ is not efficient.
Suppose you purchased 500 shares of stock in 2013 for $15 a share, and the price now is $20 a share. If you sell the stock, then your capital gain is
A) $2500. B) $1000. C) $10000. D) indeterminate without knowing the inflation rate.
In order to correct the problems associated with external costs,
A) the signals given to the economy must change so that decision-makers will take into account all the costs of their actions. B) the government must take over production of industries that are responsible for most of the pollution. C) standards must be established that make it illegal to pollute. D) the prices of all goods must be raised so people will consume less of the world's resources.