Which of the following is the strongest evidence of a shift toward a more expansionary fiscal policy?
a. an increase in government spending as a share of the economy and an expansion in the size of the budget deficit
b. a reduction in government spending as a share of the economy and a shift of the budget toward a surplus
c. an increase in government spending as a share of the economy and a shift of the budget toward a surplus
d. a reduction in government spending as a share of the economy and an expansion in the size of the budget deficit
A
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
At the start of a cost-push inflation,
A) the price level rises and real GDP does not change. B) the price level remains constant and real GDP increases. C) the price level rises and real GDP decreases. D) the price level remains constant and real GDP decreases. E) the price level and real GDP both increase.
In the figure above, the richest 20 percent of households receive ________ of total income
A) 55 percent B) 45 percent C) 80 percent D) 60 percent
A mostly filled movie theatre is an impure public good
a. True b. False