The traditional Keynesian approach to fiscal policy assumes that
A) an equal income distribution ensures a stable economy.
B) consumers spend more when their incomes are higher.
C) cutting taxes is a more effective way to stimulate the economy than is increasing government spending.
D) the effect of unemployment compensation is to destabilize the economy.
B
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Information advertising might provide information about prices in stores, or it might provide information about product characteristics that consumers might not know about. Which one do you think is more likely to be efficient?
What will be an ideal response?
The chain-weighted output index method of calculating real GDP compares
A) compares the quantities of goods produced in consecutive years using prices in both years and averaging the percentage changes in the value of output. B) quantities produced in different years using prices from a year chosen as a reference period. C) quantities produced in different years with the prices that prevailed during the year in which the output was produced. D) prices at different points in time using a sample of goods that is representative of goods purchased by households.
A monopolist will operate where
A. MR = MC and charge a price equal to marginal revenue. B. MR = MC and charge a price equal to marginal cost. C. MR = MC and charge a price corresponding to demand at that level. D. MC = MR and charge a price corresponding to average cost.
A contour map illustrates which of the following?
a. the cause-effect relationship between two variables b. the cause-effect relationship between three variables c. the way that three variables are correlated d. the way that one variable affects another, which in turn affects a third variable e. the way that two variables are correlated and in turn cause changes in a third variable