In a booming economy, discretionary fiscal policy:
A. can be added to the automatic stabilizers effects of policies already in place.
B. often acts counter to the automatic stabilizers that already exist.
C. removes the effect of the automatic stabilizers that already are present.
D. All of these are true.
A. can be added to the automatic stabilizers effects of policies already in place.
You might also like to view...
Assume two people live in the same neighborhood, the same size house and earn identical incomes. Both are unmarried without children. How might one of them actually be poorer than the other?
What will be an ideal response?
The absolute value of the slope of the budget constraint is equal to
A) the quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis. B) the price of good on the horizontal axis divided by the price of the good on the vertical axis. C) the marginal rate of substitution between the two goods in question. D) the price of good on the vertical axis divided by the price of the good on the horizontal axis.
In the early 1990s, M2 growth underwent a dramatic ________, which some researchers believe ________ be explained by traditional money demand functions
A) surge; cannot B) surge; can C) slowdown; cannot D) slowdown; can
A student receives a bachelor's degree in economics and then achieves gainful employment as an economic analyst with a Fortune 500 company. This new worker is likely to enhance the economy's productivity through:
A) scarcity. B) free goods. C) stable prices. D) specialization of labor.