According to the concept of the full-employment balanced budget,
a. the actual deficit or surplus is the best signal of the direction of fiscal policy.
b. tax rates and government spending programs should be set up so as to balance the budget at the full-employment income level.
c. automatic stabilizers should be eliminated from the economy.
d. the government is always following an expansionary fiscal policy when there is a deficit.
b. tax rates and government spending programs should be set up so as to balance the budget at the full-employment income level.
You might also like to view...
Refer to the scenario above. Jack will derive ________ units of utility if both of them try to move the tree
A) 5 B) -5 C) -2 D) 10
Which fact about recycling is incorrect?
A. Between 1980 and 2008, recycling in the United States has tripled. B. As of 2014, the 27 European Union members recycled more in terms of a percentage of garbage than the United States. C. Recycling rates of commonly used materials in the United States and industrial countries have fallen. D. Only 9 percent of plastics are recycled.
The market and public sector are similar in that
A. there is competition among the participants in both sectors. B. the participants in both sectors react to incentives. C. the resources used in both sectors are scarce. D. All of these are true.
Price controls date back to
A. World War II. B. the U.S. Revolutionary War. C. thousands of years, at least back to ancient Babylonia. D. the 1970s. E. the last 20 years.