An expansionary fiscal policy can:
(a) Raise the national debt;
(b) Decrease the national debt;
(c) Have no effect on national debt;
(d) None of above.
Answer: (a) Raise the national debt;
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An increase in ________ increases potential GDP and ________ aggregate supply
A) the money price of oil; decreases B) the money wage rate; decreases C) the money wage rate; increases D) technology; decreases E) technology; increases
When a firm produces output,
A) The value of the output produced is included in GDP B) The firm's output contributes to GDP only to the extent that there is value-added. C) The firm's output will not count as GDP if it is stored as inventory. D) The firm's output will not count as GDP if it is exported.
Moral hazard is:
A. when individuals make exchanges in the grey market. B. the tendency for people to behave in a riskier way when they're insured. C. when one party acts in a way that is ethically outside the norm in a market exchange. D. when both parties act in a way that is ethically outside the norm in a market exchange.
What will be the outcome of a government law requiring employers with more than 100 employees to incur additional employee-related costs?
a. raise the cyclical rate of unemployment b. lower the cyclical rate of unemployment c. raise the natural rate of unemployment d. lower the natural rate of unemployment