The distinction between discretionary fiscal policy and the use of automatic stabilizers is that:
a. only discretionary fiscal policy can stimulate the economy
b. only automatic stabilizers can stimulate the economy.
c. discretionary fiscal policy, once adopted, is built into the structure of the economy.
d. automatic stabilizers, once adopted, are built into the structure of the economy.
e. only discretionary fiscal policy can be used by the federal government.
d
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All of the following are examples of a sequential game except which one?
A) Checkers B) Tic-Tac-Toe C) Chess D) Rock-Paper-Scissors
Consider the hypothetical supply and demand of Kidneys.
Initially, kidneys are exchanged by donations only (price=0). If the government decides to legalize kidney sales and the market reaches equilibrium, then:
A. total surplus increases.
B. consumer surplus remains the same.
C. producer surplus remains the same.
D. a shortage of kidneys will arise.
Ace has always been a top student, so it was no surprise he won a $1,500 scholarship from the company where he worked summers to help with college expenses. Ace decides to spend his scholarship money on a new Apple MacBook. How will GDP be affected by Ace's recent purchases?
A. Consumption will go up by $1,500, because a computer is a nondurable good. B. Consumption will go up by $1,500, because a computer is a durable good. C. Investment will go up by $1,500, because a computer is a durable good. D. GDP will not be affected, since Ace acquired the computer with scholarship money.
A decrease in the growth rate of the money supply eventually causes the short-run Phillips curve to shift right
a. True b. False Indicate whether the statement is true or false