Which of the following would be an example of passive policy making?
A) establishing a system of automatic tax stabilizers
B) marginal rate tax cuts intended to increase real Gross Domestic Product (GDP)
C) government spending decreases intended to decrease real Gross Domestic Product (GDP)
D) none of the above
A
You might also like to view...
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
If the real risk-free interest rate falls, the:
a. Demand curve for real loanable funds rises. b. Demand curve for real loanable funds falls. c. Supply curve of real loanable funds rises. d. None of the above.
Economists in the field of industrial organization study how
a. central banking policies affect financial markets. b. firms' demand for labor and individuals' supply of labor affect resource markets. c. firms' decisions about prices and quantities depend on market conditions. d. externalities and public goods affect the environment.
The ratio of the percentage change in the quantity demanded of product x to the percentage change in the price of product y is defined as:
a. the income elasticity of demand for x. b. the price elasticity of supply of y. c. the price elasticity of demand for y. d. the cross price elasticity of demand for x.