Discretionary fiscal policy refers to
A) deliberate government efforts to stabilize the economy through government spending and taxes.
B) the use of automatic stabilizers and intervention policies to stabilize the economy.
C) any government policy that requires a lag period of at least three months.
D) the deliberate use of government spending and taxes to complement the effects of monetary
policy in an effort to stabilize the economy.
Ans: A) deliberate government efforts to stabilize the economy through government spending and taxes.
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In the 1980s and most of the 1990s, the federal government
A) ran small deficits. B) ran small surpluses. C) ran large deficits. D) was balanced.
A fall in inventories is synonymous with ________ investment
A) negative fixed B) positive fixed C) positive inventory D) negative inventory
The difference between the costs (or benefits) created by both technological and pecuniary externalities is that in both cases costs are imposed on _____, but for _____ they are external to the market while _____ are allocated within the market
a. parties to the transaction; technological externalities; pecuniary externalities b. parties to the transaction; pecuniary externalities; technological externalities c. third parties; technological externalities; pecuniary externalities d. third parties; pecuniary externalities; technological externalities
All the below choices are examples of promoting a firm's product, except
a. Advertising b. Pricing c. Discount coupons d. End-of-aisle displays