Fiscal policy is defined as changes in federal ________ and ________ to achieve macroeconomic objectives such as price stability, high rates of economic growth, and high employment
A) taxes; interest rates
B) taxes; the money supply
C) interest rates; money supply
D) taxes; expenditures
Answer: D
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Collusion is more likely to occur when
A) there is fear of punishment for not colluding. B) there is a known finite time horizon. C) there are large gains to be made by cheating on an agreement. D) the game lasts only one period.
Higher interest rates
A) reduce total planned real expenditures because they increase the cost of borrowing funds. B) reduce total planned real expenditures because they reduce the income of bankers and other creditors. C) increase total planned real expenditures because they increase the incomes of all people in the economy. D) increase total planned real expenditures because they lower the costs of building new plants and equipment.
The sector of the economy experiencing the lowest rate of growth in productivity has been the ________ sector.
Fill in the blank(s) with the appropriate word(s).
Suppose Jones sells a good for $100 at a yard sale. If the producer surplus from the sale is $75, Jones's cost of the good must have been:
A. $100. B. $175. C. $25. D. equal to the deadweight loss.