An example of fiscal policy would be government:
A. increasing the amount of available educational grants.
B. increasing money supply.
C. decreasing the income tax.
D. increasing corporate income taxes.
Answer: B
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If a competitive market operates perfectly, it relies on
A) the number of people buying goods. B) the laws of supply and demand. C) how much people are willing to pay for the products. D) how many products can be produced for sale.
From what viewpoint is a sales tax most likely to be considered regressive?
a. If one considers lifetime consumption as equal to income. b. If one considers that many goods consume by low-income individuals are exempt from taxation. c. If one considers it as a consumption tax on current income. d. If one considers it as equal to a tax on wealth.
Which of these is a likely impact of an increase in the price level in an economy on the aggregate supply in the economy?
a. An increase in the quantity of real GDP supplied b. A decrease in the quantity of real GDP supplied c. A leftward shift of the aggregate supply curve d. A rightward shift of the aggregate supply curve e. An increase in the slope of the aggregate supply curve
With an upward-sloping supply curve, which of the following is true?
a. An increase in price results in a decrease in quantity supplied. b. An increase in price results in an increase in supply. c. A decrease in price results in a decrease in quantity supplied. d. A decrease in price results in an increase in supply.