Most of the government budget is mandatory spending through programs like Medicare and Social Security, and much of the rest is politically difficult to alter. Because of this:
A. the amount of spending is unlikely to be implemented as economists suggest.
B. fiscal policy that involves raising taxes is more likely to be implemented than fiscal policy that involves borrowing money.
C. most spending is geared to perform as an automatic stabilizer, so that Congress is in fact largely irrelevant when it comes to providing a fiscal response to a recession.
D. fiscal policy is always undertaken only when there is a national crisis that motivates voters to seek change.
Answer: A
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Since 1960, life expectancy at birth has ________ in the United States
A) dropped slightly B) remained unchanged C) risen almost 10 years D) risen more than 17 years
The price level in the economy between 2014 and 2015 rose from 100 to 110. Between 2015 and 2016, the price level rose from 110 to 121. How does the short-run Phillips curve predict the unemployment rate will change as a result?
A) The unemployment rate will increase since inflation increased. B) The unemployment rate will decrease since inflation increased. C) The unemployment rate will decrease since inflation decreased. D) The unemployment rate will not change since there is no change in the rate of inflation.
Under a fixed exchange rate system, a balance of payments deficit may:
A) decrease the country's money supply if there is a non-sterilized central bank intervention. B) decrease the country's money supply if there is a sterilized central bank intervention. C) increase the country's money supply if there is a non-sterilized central bank intervention. D) increase the country's money supply if there is a sterilized central bank intervention.
The term "industry concentration":
A) refers to the degree of product differentiation in an industry. B) is a measure of how many firms produce the total output of an industry. C) refers to how capital or labor intensive a particular industry is. D) is a measure of how many customers purchase the total output of an industry.