When the federal government uses taxation and purchasing actions to stimulate the economy it is conducting
A. monetary policy.
B. fiscal policy.
C. employment policy.
D. incomes policy.
Answer: B
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It is true in monopoly pricing that the
A. sky is not the limit. B. market cannot impose a price on a monopolist. C. monopolist is a price maker. D. All of these responses are correct.
Entry of new firms into a perfectly competitive market lowers the profits of the existing firms
Indicate whether the statement is true or false
In response to the recession of 2008-2009, the fiscal policy of the federal government was
a. highly expansionary, and this Keynesian stimulus promoted a rapid recovery. b. highly expansionary, but this was largely offset by the Fed's restrictive monetary policy c. highly restrictive, but this was largely offset by the Fed's highly expansionary monetary policy d. highly expansionary, but the unemployment rate nonetheless remained high during 2010 and 2011
The classical school of thought believed that ______.
a. Say’s law was incorrect b. Keynes’s macroeconomic model was correct c. an economy can experience prolonged unemployment d. wages and prices adjust quickly to changes in supply and demand