2.3 Discretionary Policy
What will be an ideal response?
Sometimes, the automatic stabilization effect of government spending and taxes cannot smooth economic ups and downs as much as is needed. Relatively severe problems of recession or inflation often give rise to proposals to use an active, or discretionary fiscal policy to remedy the situation.
You might also like to view...
In the figure above, with the rent ceiling ________ units of housing are available, and black market rents might be as high as ________ a month
A) 3,000; $625 B) 6,000; $400 C) 3,000; $550 D) 4,000; $550 E) 4,000; $625
Best Paper and Copies R Us are two paper suppliers that are competing with each other. If Best Paper announces an upcoming price change next month, it may be signaling to Copies R Us its intent to engage in ________.
A) a Chamberlin oligopoly B) a Stackelberg oligopoly C) a Cournot oligopoly D) tacit collusion
People under the age of 25 are less likely to be poor than those older than 25
Indicate whether the statement is true or false
Refer to the given data. The labor supply curve facing firms is:
Use the labor demand data on the left and the labor supply data on the right in answering the following question:
A. such that it does not intersect the labor demand curve.
B. upsloping.
C. perfectly inelastic.
D. perfectly elastic.