Fiscal policy refers to
A) changes in the amount of government expenditures and taxes to achieve particular economic objectives.
B) changes in the composition of a given amount of government expenditures to achieve particular economic objectives.
C) changes in interest rates initiated by government action.
D) any change in government spending or taxes that has the intended effect of destabilizing the economy.
A
You might also like to view...
Adverse selection in insurance implies that
a. all people face the same risk b. potential customers facing more risk are no more interested in purchasing insurance c. people are not risk averse d. insurers cannot tell the risk levels that different individuals face
If the price of used automobiles increased dramatically relative to all other prices, and the demand for all goods remained the same, which of the following would most likely occur?
a. The GDP price index would decrease less than the CPI. b. Both the GDP price index and the CPI would decrease. c. The GDP price index would increase more than the CPI. d. The CPI would increase more than the GDP price index. e. Both the GDP price index and the CPI would increase by the same amount.
The large amount of violence associated with the current drug trade is mostly caused by
a. the fact that drug markets must operate outside the normal legal system. b. buyers and sellers often being under the influence of drugs at the time of the transaction. c. buyers and sellers who are often unfamiliar with conducting normal transactions within the legal system. d. the lack of quantity supplied and quantity demand being in balance in black markets because there is no equilibrium price in these markets.
We observe the duration of unemployment rising and wage rates falling. It is likely that
A. aggregate supply has increased. B. summer has arrived. C. the government has initiated expansionary fiscal policy but the policies haven't taken effect yet. D. aggregate demand has decreased.