Suppose Congress increases income taxes. This is an example of
A) expansionary fiscal policy.
B) expansionary monetary policy.
C) contractionary fiscal policy.
D) contractionary monetary policy.
C
You might also like to view...
If the real interest rate is 4 percent and the inflation rate is 3 percent, then the nominal interest rate is
A) -1 percent. B) 1 percent. C) 3.5 percent. D) 7 percent.
If you got a new job and moved to Dale, Indiana (population 1,500), you would expect to find two grocery stores. The market form is
A. oligopoly. B. monopoly. C. monopolistic competition. D. perfect competition.
Which of the following examples of product differentiation uses prestige?
a. A cheese company advertises that it uses only milk from grass-fed cows. b. An automobile company advertises that it recently won Best Car of the Year. c. A chain coffee store advertises its many locations. d. A fast-food restaurant advertises service under five minutes per customer.
The new classical model has as its central idea that
A) wage and price stickiness explain fluctuations in real GDP. B) workers and firms have rational expectations. C) the Federal Reserve should adopt a monetary growth rule. D) shifts in aggregate demand have no impact on real GDP.