If the average price level increases by 2 percent this year, price stability has been achieved.
Answer the following statement true (T) or false (F)
True
Price stability as defined by the Full Employment and Balanced Growth Act of 1978 is an inflation of 3 percent or less per year.
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Typical goals for fiscal policy are
A) running high deficits and raising consumer prices. B) high prices for consumers and low prices for businesses. C) high employment and price stability. D) increasing the money supply so the government can spend more.
Which of the following would be a laissez-faire approach for the government to follow?
a. take control of the nation's airline system b. regulate the allowable emissions of pollutants from electric plants c. remove all regulations on the channels a cable television system must carry d. become more stringent in the type of mergers that receive government approval e. protect dairy-farm owners with a guaranteed minimum price for milk
The nice thing about a pollution tax is that it
a. eliminates pollution b. forces cleanup to occur c. is imposed only on the market with the externality d. creates new property rights e. creates positive externalities to compenstate for negative externalities
In Country X, the government requires employers to collect 9 percent of every employee's compensation as payroll tax. This is an example of
a. progressive tax. b. regressive tax. c. digressive tax. d. proportional tax.