When the government changes taxes and spending, it is implementing
A. incomes policy.
B. monetary policy.
C. supply-side policy.
D. fiscal policy.
Answer: D
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If Korea is capable of producing either shoes or soccer balls or some combination of the two, then
a. Korea should specialize in the product in which it has an absolute advantage. b. it would be impossible for Korea to have an absolute advantage over another country in both products. c. it would be difficult for Korea to benefit from trade with another country if Korea is efficient in the production of both goods. d. Korea's opportunity cost of shoes is the inverse of its opportunity cost of soccer balls.
Government attempts to lower, raise, or simply stabilize prices can:
A. reduce efficiency of a market. B. shift the distribution of surplus. C. create unintended side effects. D. All of these are true.
A shift occurs in the supply curve for salt when:
A. the price of salt increases. B. improvements are made in the production process. C. salt is found to be associated with high blood pressure. D. consumers expect the price of salt to increase in the future.
An oligopoly with a dominant price leader will produce an output level that is ________ than the output level that would prevail if the industry were competitive and sells it at a price that is ________ than the price that would prevail if the industry were competitive.
A. lower; lower B. lower; higher C. higher; higher D. higher; lower