Active changes in tax and spending by government intended to smooth out the business cycle are called ________, and changes in taxes and spending that occur passively over the business cycle are called ________
A) discretionary fiscal policy; automatic stabilizers
B) automatic stabilizers; monetary policy
C) discretionary fiscal policy; conscious fiscal policy
D) automatic stabilizers; discretionary fiscal policy
A
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
An increase in real disposable income will:
a. increase the value of net exports of a country. b. decrease the value of net exports of a country. c. increase government purchases. d. decrease government purchases. e. increase net taxes.
if you take investment by US residents in other countries and you subtract investment by foreign resident in the US, you will find
What will be an ideal response?
The quantity of money people are willing and able to hold at alternative interest rates, ceteris paribus, is known as the
A. Supply of money. B. Demand for money. C. Equilibrium of money. D. None of the choices are correct.