Fiscal drag refers to the
a. slowing effect on the economy that results from a government budget deficit.
b. stimulating effect on the economy that results from a government budget deficit.
c. stimulating effect on the economy that results from a government budget surplus.
d. slowing effect on the economy that results from a government budget surplus.
d. slowing effect on the economy that results from a government budget surplus.
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The claim that advertising reduces the elasticity of demand is likely to be made by a defender of advertising
a. True b. False Indicate whether the statement is true or false
Matthew bakes apple pies that he sells at the local farmer's market. If the price of apples increases, the
a. supply curve for Matthew's pies will increase. b. supply curve for Matthew's pies will decrease. c. demand curve for Matthew's pies will increase. d. demand curve for Matthew's pies will decrease.
Which of the following is the best example of a microeconomic topic?
A. The impact that the money supply has on inflation. B. The reasons for increases in the price of soft drinks. C. The effect that federal budget deficits have on the interest rate. D. The tradeoff between inflation and unemployment.
Which of the following will cause the demand curve for product A to shift to the left?
A. A decrease in the price of complementary product C B. An increase in money income if A is an inferior good C. An increase in money income if A is a normal good D. Population growth that causes an expansion in the number of persons consuming A