There is general agreement among economists that a proposed fiscal policy should be evaluated for its:
A. potential positive and negative effects on long-run productivity growth.
B. contribution to the purpose of "fine-tuning" the economy.
C. contribution to the growth of exports and imports in the economy.
D. potential positive and negative effects on short-run business indebtedness.
Answer: A
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Indicate whether the statement is true or false
For the average person, insurance is
A. not a gamble. B. a useless option. C. a fair gamble. D. an unfair gamble.
Which of the following would be most likely to encourage capital formation in a less-developed country?
A. the expectation of sustained high inflation B. the expectation that property rights will be highly secure in the years ahead C. the imposition of high tariffs and other restraints limiting imports D. higher personal and corporate tax rates
At the economy's natural rate of unemployment:
A. the economy achieves its potential output. B. there is only a relatively small amount of cyclical unemployment. C. only frictional unemployment exists. D. only structural unemployment exists.