________ analysis addresses the question of whether a policy should be used, while ________ analysis addresses the economic consequences of a particular policy.
A. Positive; normative
B. Fiscal; monetary
C. Monetary; fiscal
D. Normative; positive
Answer: D
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When entry barriers into a market are high,
a. a monopolist will always be able to make an economic profit. b. rival firms will enter and drive price down to the level of per-unit costs if the firms in the market are making economic profit. c. entry into the market will not take place, at least not quickly, even if the firms currently in the market are making economic profits. d. the producers in the market will have little or no incentive to produce efficiently (at a low cost).
In which market should you begin your analysis if immigration of low-skilled workers increases?
a. Real loanable funds market, with a shift in the supply of real loanable funds b. Real loanable funds market, with a shift in the demand for real loanable funds c. Foreign exchange market, with a shift in the supply of domestic currency d. Foreign exchange market, with a shift in the demand for domestic currency e. Real goods market with, a shift in aggregate supply
Which of the following is an example of expansionary fiscal policy?
a. Decrease government spending. b. Increase government spending. c. Increase taxes and decrease government spending equally. d. Increase taxes.
A shift of the supply curve for farm products to the right in a price inelastic region of the demand curve for farm products
A) reduces price and total revenue. B) increases price and reduces total revenue. C) reduces price and increases total revenue. D) increases prices and total revenue.