Increased government spending on unemployment insurance during a recession is an example of:

A. expansionary fiscal policy.
B. contractionary fiscal policy.
C. discretionary fiscal policy.
D. an automatic stabilizer.


Answer: D

Economics

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What will be an ideal response?

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An inferior good is one for which an increase in income causes a(n)

a. increase in supply b. decrease in supply c. increase in demand d. decrease in demand

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Which of the following would a behavioral economist be most likely to study?

a. how raising price affects demand for new technology products with no known substitutes b. the effect of consumer equilibrium on a hypothetical transnational marketplace c. how websites that favor one- or five-star customer reviews influence purchasing decisions d. the effects of financial debt on the psychological health of consumers and appropriate treatments

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