Countercyclical fiscal policy is
a. fiscal policy designed to intensify the business cycle in the same way that we fight fire with fire
b. fiscal policy designed to moderate the severity of the business cycle
c. fiscal policy designed to make the economy grow faster than the rate of growth represented by the long term trend
d. fiscal policy that does not depend on government intervention in the economy
e. fiscal policy that moves in one direction only: increases in government spending that are designed to make the economy grow faster
B
You might also like to view...
Market clearing means
A) quantity demanded exceeds quantity supplied. B) quantity demanded equals quantity supplied. C) quantity demanded is less than quantity supplied. D) quantity demanded and quantity supplied both equal zero.
Compared to other developed countries:
a. total health spending in the U.S. is much higher b. U.S. health care spending as a percentage of GDP is below average c. both of the above d. neither of the above
If the Fed decides to maintain a fixed euro/dollar exchange rate when they purchase euros:
A. they increase the number of dollars. B. the domestic money supply increases. C. downward pressure is put on domestic interest rates. D. all of the answers given are correct.
The Keynesian, Classical, and Intermediate ranges apply to the
A. slope of the individual market demand curve. B. slope of the aggregate demand curve. C. shape of the individual market supply curve. D. shape of the aggregate supply curve.