The use of government expenditures and taxes to influence the level of economic activity is called fiscal policy.
a. true
b. false
Ans: a. true
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Which of the following goods is rival in consumption and is also excludable?
A) A fireworks display B) A movie shown on cable television C) A DVD D) A magic show in a public park.
Those who favor a passive approach to policy often argue that changes in prices and wages will shift the:
a. short-run aggregate supply curve before active policy shifts the aggregate demand curve b. short-run aggregate supply curve only after active policy shifts the aggregate demand curve. c. short-run aggregate supply curve more than active policy shifts the aggregate demand curve. d. short-run aggregate supply curve less than active policy shifts the aggregate demand curve. e. short-run aggregate supply curve in a direction opposite the shift in the aggregate demand curve
The mathematical result showing that, under certain assumptions, there is no scheme for aggregating individual preferences into a valid set of social preferences is called
How does an inflationary gap occur?
What will be an ideal response?