If the economy is in a recession and prices are relatively stable, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be:
A. increased government spending or decreased taxation, or a combination of the two actions.
B. decreased government spending or decreased taxation, or a combination of the two actions.
C. increased government spending or increased taxation, or a combination of the two actions.
D. increased government spending or increased taxation, but not a combination of the two actions.
Answer: A
You might also like to view...
In a common-value auction
a. No bidder knows what the exact value of the item being auctioned b. Each bidder has only an estimate of the value of the item c. The value is the same for each bidder d. All of the above
Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the amount consumers pay producers?
a. 60 b. 2400 c. 3600 d. 6400
All of the following conditions must exist for the median-voter theorem to hold except that:
A. there is a single one-dimensional policy question. B. candidates win by majority vote. C. there are only two candidates. D. the policy being voted on must be uncontroversial.
Assuming everything else stays the same, an increase in the price of smartphones will __________ of smartphones.
a) increase the supply b) increase the quantity supplied c) decrease the quantity supplied d) decrease the supply