Nondiscretionary fiscal policy
A. entails legislative changes in government spending or taxes to stabilize the economy.
B. include changes in tax rates designed to reduce unemployment.
C. is the culprit whenever the federal government runs a budget deficit.
D. involves changes in spending and taxes that occur automatically as economic conditions change.
D. involves changes in spending and taxes that occur automatically as economic conditions change.
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The Great Moderation describes the period
A) of relatively steady growth in real GDP between 1991 and 2008. B) of very slow growth in real GDP after 1990. C) between 2000 and 2008 when potential GDP did not increase. D) between 1990 and 2005 when real GDP grew significantly more slowly than did potential GDP. E) of relatively steady growth in real GDP after the year 2000.
If the price of a good increases, all else the same, then the consumer's total utility will
A) increase. B) decrease. C) remain the same as consumption shifts to cheaper goods. D) decrease if there are no substitutes for the good and remain the same if there are substitutes for the good.
In a competitive market, every consumer willing to pay the market price can buy a product and every producer willing to sell the product at that price can sell it.
Answer the following statement true (T) or false (F)
Each of these is a basic characteristic of a capitalist economy, except
A. the institution of private property. B. central planning. C. laissez-faire. D. individuals acting in their own self-interest.