According to economic theory, the democratic political processes tend to produce
A) unstable aggregate demand policies with a bias toward expansion.
B) unstable aggregate demand policies with a bias toward contraction.
C) stable aggregate demand policies, but only if economists are elected to office.
D) stable aggregate demand policies that are in the best interests of the nation as a whole.
E) economic policies that harm everybody.
A
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Which of the following is a microeconomic question?
A) Should Congress and the president take action to reduce the unemployment rate? B) Why do some countries have higher economic growth rates than other countries? C) Should companies pay for employees' health insurance? D) Should the Fed attempt to influence the interest rate to control potential inflation?
Tariffs ________ consumer surplus and import quotas ________ consumer surplus
A) decrease; decrease B) increase; increase C) decrease; increase D) increase; decrease
Johnny has been working a lot of overtime during the most current economic boom. As a result, his income is high enough for him to move from the 10 percent tax bracket to the 15 percent tax bracket. So, Johnny pays a higher percentage of a higher income to the government this year. The increased amount paid to the government is an example of:
A. discretionary fiscal policy slowing the economy. B. automatic stabilizers slowing the economy. C. discretionary fiscal policy encouraging economic activity. D. automatic stabilizers encouraging economic activity.
The major problem with paired-choice majority voting is that the outcome:
A. Is constant B. Is subject to bribery and abuse C. May depend on the order of the voting D. Results in clear preferences among the choices