Fiscal stimulus involves raising taxes and reducing spending to stimulate the economy.
Answer the following statement true (T) or false (F)
False
Fiscal stimulus involves reducing taxes and increasing spending to stimulate the economy.
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Refer to Table 19-32. The table above represents hypothetical data from the National Income Accounts for 2015. Use the data to calculate personal income and disposable income
What will be an ideal response?
Which of the following is a normative economics statement?
a. An increase in the minimum wage will reduce teenage employment. b. Increasing the minimum wage will result in more votes for progressive candidates. c. Raising the minimum wage would greatly increase labor costs in certain industries. d. Raising the minimum wage is a poor idea because living wage laws are better.
The trade-creation effect refers to:
a. the outcome of a preferential trade agreement that reduces economic efficiency by shifting production to a higher-cost producer. b. the effect of an increase in the quantity of imports relative to the effect of a tariff applicable to all imports. c. the outcome of a preferential trade agreement that allows a country to obtain goods at a lower cost than is available at home. d. the effect of a diversion of production to a country that has comparative advantage due to a free trade agreement. e. the effect of a decrease in the quantity of exports relative to the effect of a subsidy applicable to all exports.
?Money that is acceptable because the government requires that it be accepted in payment of debt is _____
a. legal tender
b. commodity money
c. bad money
d. backed by government's wealth
e. hoarded by the people