Contractionary fiscal policy is so named because it:
A. involves a contraction of the nation's money supply.
B. necessarily reduces the size of government.
C. is aimed at reducing aggregate demand and thus achieving price stability.
D. is expressly designed to expand real GDP.
C. is aimed at reducing aggregate demand and thus achieving price stability.
You might also like to view...
The property tax is very popular because
A. it is fairly assigned. B. it is administered locally. C. it is very regressive. D. all of these answer options are correct. E. none of these answer options are correct.
What is convergence hypothesis? Why should we expect convergence in the long run?
People's tendency to prefer something that will yield immediate benefits over something whose benefits come later is called by behavioral economists as:
A. Myopia B. Mental accounting C. Anchoring D. Framing
If the real wage is above the equilibrium level in the labour market:
a) The quantity demanded of labour is higher than the quantity supplied b) The quantity demanded of labour equals the quantity supplied c) The quantity demanded of labour is lower than the quantity supplied d) The real wage will automatically rise in the short run to bring about equilibrium