Fiscal policy most directly affects the economy by increasing or decreasing:
A. aggregate demand.
B. interest rate.
C. long-run aggregate supply.
D. the money supply.
A. aggregate demand.
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After implementation of the Single European Act, value added taxes in the EU were
A) completely harmonized. B) unchanged. C) partially harmonized with minimum and maximum permissible values set by the EU. D) eliminated except on a few items in each country. E) cut in half in order to increase the role of corporate taxes.
When total planned real expenditures change due to changes in the cost of borrowing that result from variations in the price level, this is known as the
A) interest rate effect. B) real-balance effect. C) open economy effect. D) aggregate balances effect.
An economic naturalist is someone who:
A. studies the process of natural selection in a cost-benefit framework. B. has an innate talent for using economic concepts. C. applies economic insights to understand everyday life. D. uses economic arguments to protect the environment.
According to the law of ________, there is a positive relationship between price and ________.
A. supply; the quantity supplied B. demand; quantity demanded C. demand; change in demand D. supply; the change in supply