Discretionary fiscal policy is a policy that _____
a. is developed in secret
b. applies to some states and not all states
c. applies to only to some specific industries in an economy
d. works automatically without public announcement or plan
e. is an intentional change in taxation or government spending
e
You might also like to view...
According to the classical model, desired saving is
A) affected by the money illusion at low income levels. B) identical to the demand for saving at each level of real GDP. C) a function of real GDP. D) equal to desired investment.
Comparing the minimum wages between 1974 and 2011 addresses the economic concept of
A) the principle of voluntary exchange. B) the principle of diminishing returns. C) the real-nominal principle. D) the marginal principle.
An increase in the price of a loaf of bread will
a. cause the budget constraint to rotate outward b. reduce the minimum number of loaves any individual consumer can purchase c. increase the minimum number of loaves any individual consumer can purchase d. increase the maximum number of loaves any individual consumer can purchase e. reduce the maximum number of loaves any individual consumer can purchase
The terms of trade
a. equal the ratio of opportunity costs of production in two countries b. equal the ratio of marginal production costs in two countries c. is the quantity of one good that is exchanged for one unit of another good d. are determined by absolute advantage e. equal the ratio of average production costs in two countries