The components of aggregate demand are
A. Consumption, government spending, net exports, and investment.
B. Consumption, exports, imports, and disposable income.
C. Exports, imports, investment, and disposable income.
D. Consumption, inventory, government spending, and disposable income.
Answer: A
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Typical goals for fiscal policy are
A) running high deficits and raising consumer prices. B) high prices for consumers and low prices for businesses. C) high employment and price stability. D) increasing the money supply so the government can spend more.
How can government policies reduce market failure?
a. Price controls allot resources fairly. d. Business incentives promote efficiency. b. Regulations satisfy special interests. c. Sales taxes distort market price signals.
Money performs its job as a standard of value very well
A. in the short run. B. in the long run. C. in both the short and long run. D. in neither the short run nor the long run.
The possible double taxation of income is a disadvantage for
A) sole proprietorships and partnerships. B) partnerships and corporations. C) sole proprietorships and corporations D) corporations.