Fiscal policy is:
A. government decisions about the level of taxation and public spending.
B. congressional budget office decisions.
C. the decisions that affect the available money supply in the economy.
D. government decisions about the level of the interest rate in the economy.
A. government decisions about the level of taxation and public spending.
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
What is one of the biggest differences between a sole proprietorship and a corporation?
A) Sole proprietorships offer stock. B) Corporation shareholders elect the managers of the firm. C) Sole proprietorships have limited liability. D) Corporations are the only profitable firms.
According to mainstream economists the basic determinant of real output, employment, and the price level is
A. the incentive to work, save, and invest. B. the level of aggregate expenditures. C. the supply of money. D. information and people's expectations.
The difference between quantity restrictions and price ceilings as to their effect on the market is that
A) only price ceilings make the market inefficient. B) only quantity restrictions make the market inefficient. C) while some consumers gain from price ceilings, no consumers gain from quantity restrictions. D) while price ceilings are efficient, quantity restrictions are not.