The Central Bank of Wiknam increases the money supply at the same time the Parliament of Wiknam passes a new investment tax credit. Which of these policies shift aggregate demand to the right?
a. both the money supply increase and the investment tax credit
b. the money supply increase but not the investment tax credit
c. the investment tax credit but not the money supply increase
d. neither the investment tax credit nor the money supply increase
a
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What most accurately describes what happened to earnings in the US between 1914 and 1920?
a. Both nominal and real earnings increased substantially. b. Nominal and real earnings dropped significantly as the World War I triggered a recession. c. Nominal earnings increased slightly, but real wages decreased because of the large inflation. d. A period of deflation led real earnings to increase even though nominal earnings had decreased slightly.
When the economy enters a recession, automatic stabilizers create:
A. higher taxes. B. more discretionary spending. C. budget deficits. D. budget surpluses.
As the economy declines, the collection of personal income tax revenues automatically falls. This relationship best describes how the progressive income tax system:
A. offsets the timing problem for fiscal policy. B. provides built-in stability for the economy. C. increases crowding out in the economy. D. decreases real interest rates in the economy.
Since 1960, out-of-pocket spending on health care has increased sharply as a fraction of all health care spending
Indicate whether the statement is true or false