If the government increases its spending or reduces its taxes in order to influence the level of economic activity, it is engaging in
a. regulatory policy
b. antitrust policy
c. monetary policy
d. fiscal policy
e. supply-management policy
D
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Assuming that Yd = $20,000 and C = $22,000, we would find that the average propensity to consume would be equal to
A) 0.8. B) 1.8. C) 1.1. D) 0.9.
A 10 percent increase in income increases the quantity of orange juice demanded from 19,200 to 20,800 gallons. The income elasticity of demand for orange juice is
A) 0.5. B) 0.8. C) 1.0. D) 1.2.
An indifference curve will become ________ the origin the more that the consumer considers the two goods as substitutes
A) less bowed-in towards B) more bowed-in towards C) less bowed-out from D) more bowed-out from
Marginal resource cost is the
a. cost of hiring another unit of a resource b. additional revenue generated by hiring one more unit of a resource c. additional output generated by hiring one more unit of a resource d. total cost of hiring a resource e. average cost of hiring a resource