Fiscal policy is
a. a change in money supply designed to change total spending.
b. a change in interest rates designed to change total spending.
c. a change in government purchases or net taxes designed to change total spending.
d. a change in government regulations designed to change total spending.
e. a change in policy stance by the Federal Reserve designed to change total spending.
C
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The magnitude of the tax multiplier is ________ the magnitude of the government expenditure multiplier
A) greater than B) equal to C) smaller than D) the inverse of E) exactly one half
In Florida, sunscreen and sunglasses are vital items
If the tax on sellers of these items is doubled from 5.5 percent to 11 percent, who will pay most of the tax increase: the buyer or the seller? Will the tax increase halve the quantity of sunscreen and sunglasses bought?
Beginning from a position of long-run equilibrium, suppose there is an increase in the aggregate demand curve. After adjustment and comparing the economy's new long-run equilibrium with its original long-run position, the result would be an increase in: a. real GDP
b. the price level (CPI). c. the unemployment rate. d. a and b, but not c.
The interaction of buyers and sellers determines market ______ and ______ through the forces of supply and demand.
a. regulations; outputs b. prices; outputs c. prices; tariffs d. regulations; tariffs