We use the term expansionary fiscal policy when the overall effect of decisions about taxation and spending is to:
A. increase aggregate demand.
B. decrease aggregate demand.
C. increase aggregate supply.
D. decrease aggregate supply.
A. increase aggregate demand.
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A tax imposed by a government on imports of a good into a country is called a
A) tariff. B) value added tax. C) sales tax. D) quota.
The resource most directly associated with profits is
a. land. b. labor. c. capital. d. enterprise.
Which of the following is a source of wage stickiness?
1. fixed wage contracts 2. minimum wage laws 3. workers and firms want to avoid complexity of negotiating contracts frequently A. I and III only B. I and II only C. I only D. I, II, and III
If, when a firm doubles all its inputs, its average cost of production decreases, then production displays
A) diminishing returns. B) economies of scale. C) diseconomies of scale. D) declining fixed costs.