Which of the following best expresses the central idea of countercyclical fiscal policy?
a. Planned deficits are experienced during economic booms and planned surpluses during economic recessions.
b. The balanced-budget approach is the proper criterion for determining annual budget policy.
c. Actual deficits should equal actual surpluses during a period of deflation.
d. Deficits are planned during economic recessions, and surpluses are utilized to restrain inflationary booms.
D
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Which of the following is NOT an example of the hurdle method of price discrimination?
A. Offering a mail-in rebate. B. Charging less for airline tickets if the trip includes a Saturday night stayover. C. Permanently reducing all prices by 10%. D. Giving a discount on movie tickets to people with a student ID.
Fixed investment is
A) when a firm adds to its inventories of goods. B) when a firm accumulates profits. C) dissavings. D) an expenditure by firms on new machines that are expected to produce income in the future.
The major source of surplus value is:
a. Capitalist philanthropy b. Labor c. Spontaneous order d. Monopoly e. Above Subsistence wages
The data in the national income and product accounts are compiled by
A. the House Ways and Means Committee. B. the Bureau of Economic Analysis. C. the Bureau of Labor Statistics. D. the Federal Reserve.