Discretionary fiscal policy occurs when:
a. the government passes a new law that changes tax or spending levels.
b. the government borrows funds from the public
c. the Federal Reserve issues new currency notes.
d. the Federal Reserve increases the market interest rate.
a
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One of the most important changes in the composition of the labor force in the United States has been
A. the major increase in the number of women who work outside the home. B. the drop in the number of men who only work part-time. C. the steady decline in the number of women who work. D. the increase in the ratio of male workers to female workers. E. the major increase in the number of men who work away from the home or farm.
Productivity growth rates in the United States have remained fairly constant from 1948 to 2000
a. True b. False Indicate whether the statement is true or false
When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. If the price of dynamite drops to $10, should Acme Dynamite continue to operate in the short run?
A. No, because price is less than average total cost. B. Yes, because price is greater than average variable cost. C. Yes, because price is less than average variable cost. D. No, because price is not greater than average total cost.
A political leader suggesting that an economic downturn will be better dealt with actively changing tax and spending policies is advocating
A. Monetary policy. B. Discretionary Fiscal Policy. C. Regulatory changes. D. Nondiscretionary Fiscal Policy.