Discretionary fiscal policy is so named because it:
A. involves specific changes in T and G undertaken expressly for stabilization at the option of Congress.
B. is undertaken at the option of the nation's central bank.
C. occurs automatically as the nation's level of GDP changes.
D. is invoked secretly by the Council of Economic Advisers.
Answer: A
You might also like to view...
Marni’s country is rich in timber and has large sawmills. Carlos’s country has little land, but the government has invested heavily in education and technology. The principle of comparative advantage means that ______.
a. Marni’s country will grow faster than Carlos’s because it has more natural resources b. both countries will benefit if they each specialize production based on their resources and trade with each other c. Carlos’s country will have a higher economic growth rate than Marni’s d. these countries operate on different economic tracks and cannot be directly compared
The act of buyers and sellers freely conducting business in a market
a. voluntary exchange b. free market system c. profit motive d. fraud
The misperceptions theory was originally proposed by ________ and rigorously formulated by ________
A) Milton Friedman; Robert Lucas B) John Maynard Keynes; Robert Solow C) Edward Prescott; Robert King D) James Tobin; Greg Mankiw
The objective of creating a brand name is:
a. to reduce the price of the product. b. to ensure a steady supply of the good in the market. c. to reduce the price elasticity of demand. d. to reduce the cost of production of the firm. e. to attract rival firms into the market.