Non-discretionary fiscal policy initiatives adopted in 2009 were intended mainly to
A. decrease aggregate supply.
B. decrease aggregate demand.
C. increase aggregate supply.
D. increase aggregate demand.
Answer: D
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The average tax rate faced by an individual is the ________
A) total tax paid by her divided by the total income earned B) total revenue received by the government divided by the number of taxpayers C) percentage of the last dollar earned that a household pays as a tax D) difference between the highest tax rate and the lowest tax rate
Increases in government spending result in ________ in the short run, and permanent increases in government spending result in ________ in the long run
A) complete crowding out; complete crowding out B) partial crowding out; partial crowding out C) partial crowding out; complete crowding out D) complete crowding out; partial crowding out
If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
a. elastic. b. inelastic. c. perfectly inelastic. d. perfectly elastic.
In Figure 13-1 above, which money demand curve reflects the introduction of interest-bearing checking accounts?
A) ( 0) B) L(Y0) C) (M1/P)0 D) (M1/P)1