We use the term expansionary fiscal policy when the overall effect of decisions about taxation and spending is to:
A. increase aggregate demand.
B. decrease aggregate supply.
C. increase aggregate supply.
D. decrease aggregate demand.
Answer: A
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Productivity is defined as the
a. amount of goods and services produced from each unit of labor input. b. number of workers required to produce a given amount of goods and services. c. amount of labor that can be saved by replacing workers with machines. d. actual amount of effort workers put into an hour of working time.
In the long run, current output will:
A. be above potential output. B. only equal potential output if unemployment is zero. C. equal potential output. D. be less than potential output.
Unregulated monopolies can often make an economic profit in the long run because
A) they receive government subsidies. B) they have high costs. C) barriers to entry prevent competing firms from entering the market. D) the risks of running a monopoly are high.
"Diminishing marginal utility means a downward sloping total utility curve." True or false? Explain
Indicate whether the statement is true or false