Expansionary fiscal policy:
What will be an ideal response?
the use of
government spending, transfer payments, or tax cuts to stimulate
a higher level of economic activity
You might also like to view...
The difference between the economic and political functions of government is that
A) the economic function is concerned with the Federal Taxation system while the political function is not. B) the economic function is concerned with correcting for market failures while the political function is not. C) the economic function is concerned with the reallocation of income while the political function is not. D) the economic function encourages merit goods while the political function discourages demerit goods.
Which of the following is not a key economic question?
(A) How should it be ensured that goods and services are paid for? (B) Who consumes these goods and services? (C) How should these goods and services be produced? (D) What goods and services should be produced?
Which of the following is NOT an example of a transaction cost?
A. the cost of returning a defective product B. time spent bargaining over the price of a good C. the enjoyment of owning the good D. the opportunity cost of time spent looking for stores that sold the good desired
The value of the marginal product is the:
A. marginal product generated by an additional unit of input times the price of output. B. additional inputs required to produce one more additional unit of output. C. marginal revenue generated by an additional unit of output times the number of workers hired. D. average revenue generated by workers at a firm.