Discretionary fiscal policy by the federal government involves
A. legislative variations in spending and tax policies.
B. using built-in stabilizers to smooth economic activity.
C. relying on wage and price controls to ensure price level stability.
D. presidential variations in spending and taxes without Congressional approval.
A. legislative variations in spending and tax policies.
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In a small open economy, describe what happens when an increase in wealth causes national saving to decline. Explain the impact on the real interest rate, saving, investment, net exports, and absorption in equilibrium
What will be an ideal response?
What are the characteristics of the perfectly competitive market?
Cyclical unemployment:
a. causes unemployment statistics to be understated. b. causes unemployment statistics to be overstated. c. occurs because of recessions. d. occurs because of technological innovations in production. e. only occurs with a zero inflation rate.
A decrease in foreign demand for U.S. exports will ____ the demand for U.S. dollars and cause the U.S. dollar to ____ in value
a. increase; appreciate b. increase; depreciate c. decrease; appreciate d. decrease; depreciate