What is fiscal policy, and who is responsible for fiscal policy?
What will be an ideal response?
Fiscal policy refers to changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. Congress and the president are responsible for fiscal policy.
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Which of the following pricing strategies does NOT usually enhance the profits of firms with market power?
A. Commodity bundling B. Price discrimination C. Marginal cost pricing D. Block pricing
Recall the Application about price discrimination using refillable soda bottles to answer the following question(s).According to the Application, how does the firm earn a larger profit through the refillable soda bottles?
A. The consumers who were not likely to buy the soda get a lower price, making them more likely to purchase soda. B. The seller saves money from recycling the disposable bottles. C. The seller earns more revenue from sale of the expensive recyclable bottles. D. The consumers advertise to friends that the seller gives discount through refillable bottles, causing an increase in demand.
Except for perfect complements, an indifference curve has a ________ slope and becomes ________ moving to the right
A) negative; flatter B) negative; steeper C) positive; flatter D) positive; steeper
A cartel is an agreement among firms to divide output of a product among members
a. True b. False Indicate whether the statement is true or false