Expansionary fiscal policy involves
A. a decrease in government spending and/or an increase in taxes.
B. only an increase in taxes.
C. an increase in government spending and/or a decrease in taxes.
D. only a decrease in government spending.
C. an increase in government spending and/or a decrease in taxes.
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The recessionary gap is the
A. amount of unemployment compensation required during a recession. B. budget deficit encountered during a recession. C. amount of government spending needed to end a recession. D. distance between the equilibrium level of output and the full employment level of output.
What has been the market outcome of government-enforced price floors for agricultural products?
A. A shortage of agricultural products has resulted. B. Not enough food has been produced. C. Farmers have been made worse off. D. A surplus of agricultural products has resulted.
The real interest rate is the
A) nominal interest rate plus the anticipated interest rate. B) nominal interest rate minus the anticipated interest rate. C) nominal interest rate plus the anticipated inflation rate. D) nominal interest rate minus the anticipated inflation rate.
In perfect competition, the condition that ensures that the right things are produced is
A. MUX = PX. B. P = MC. C. MRPL = ATC. D. P = ATC.