Which of the following is an example of active fiscal policy?
What will be an ideal response?
Congress passes a tax cut after the beginning of a recession with the aim of stimulating the economy.
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Over what range of prices does a surplus arise? What happens to the price when there is a surplus?
What will be an ideal response?
Refer to Table 21-2. Using the table above, what is the approximate average annual growth rate from 2013 to 2016?
A) -1% B) 1% C) 2% D) 4%
Whenever there is an increase in autonomous consumption spending, there will be
a. an upward shift of the aggregate expenditure line causing equilibrium GDP to rise b. an upward shift of aggregate expenditure line, but no change in equilibrium GDP c. no change in the aggregate expenditure line, but equilibrium GDP will rise d. an upward shift of the aggregate expenditure line, causing equilibrium GDP to fall e. no change in the aggregate expenditure line or equilibrium GDP
The concept that people should pay taxes based on the benefits they receive from government services is called
a. the ability-to-pay principle. b. the benefits principle. c. horizontal equity. d. vertical equity.