According to traditional Keynesian analysis, fiscal policy operates by
A. directly affecting aggregate demand.
B. indirectly affecting aggregate demand through its effect on the money supply.
C. directly affecting aggregate supply.
D. informing business people about its plans for the economy so they will know how to adjust their behavior.
Answer: A
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The unemployment rate is the:
A. percentage of the labor force that is out of work. B. percentage of the population that is out of work. C. number of workers unemployed. D. number of workers in the labor force.
In the economic way of thinking, private property rights provide people with
A) rules of the game. B) dependable information. C) incentives. D) none of the above. E) all of the above.
Each citizen in Nexus City has to pay $20,000 as income tax. This is an example of a ________
A) proportional income tax B) progressive income tax C) lump-sum tax D) regressive income tax
________ refers to reductions in a firm's costs that result from an increase in the size of an industry
A) Internal economies B) External economies C) Autarkial dominance D) Streamlining