A contractionary fiscal policy will reduce a government budget deficit or increase a government budget surplus and reduce borrowing by the Treasury.
a. true
b. false
Ans: a. true
You might also like to view...
In the above figure, starting at E3, if there is an increase in technology that causes a permanent increase in production capabilities
A) aggregate supply would shift to SRAS0 and LRAS1 would shift to LRAS0. B) aggregate supply would shift to SRAS2 and LRAS0 would shift to LRAS1. C) aggregate supply would shift to SRAS1 and LRAS0 would shift to LRAS1. D) aggregate supply would shift to SRAS1 and then return to SRAS0.
Explain the basic idea of the expenditure multiplier and the role consumers play in determining its magnitude
What will be an ideal response?
What is a currency board?
What will be an ideal response?
A change in a nonprice factor of supply will cause:
A. the supply curve to rotate inward. B. a movement along the supply curve. C. a shift of the supply curve. D. the supply curve to rotate outward.