Economist C says all of the following: Expansionary fiscal policy is needed to raise aggregate demand and remove the economy from a recessionary gap. The choice of fiscal policy measures is between ________________ government spending and a _______________ in taxes. Since I am in favor of bigger government, I choose a(n) _________________ in _________________
A) less; decrease; increase; government spending
B) more; decrease; increase; government spending
C) less; rise; decrease; government spending
D) less; reduction; increase; taxes
E) b or d
B
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Refer to the above figures. Which panel(s) represent economic growth?
A) Panels A and C only B) Panel D only C) Panel A only D) Panels B and D only
Real money demand in the economy is given by
L = 0.3Y - 600i, where Y is real income and i is the nominal interest rate. In equilibrium, real money demand L equals real money supply M/P. Suppose that Y equals 2000 and the real interest rate is 5%. (a) At what rate of inflation is seignorage maximized? (b) What is the maximum amount of seignorage revenue?
Real capital income is given by ________
A) MPK × K B) capital share of income × output per unit of capital × capital C) capital share of income × output D) all of the above E) none of the above
The economic system that answers the What, How and For Whom questions the way they have always been answered is a:
a. market economy. b. command economy c. soviet economy. d. traditional economy.