Which of the following relies on government taxes and spending to change macro outcomes?
A. Fiscal policy
B. Monetary policy
C. Income policy
D. Foreign-trade
Answer: A. Fiscal policy
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In general, which of the following do NOT tend to increase trade between two countries?
A) linguistic and/or cultural affinity B) historical ties C) larger economies D) mutual membership in preferential trade agreements E) the existence of well controlled borders between countries
An increase in the taxes paid by consumers shifts the aggregate demand curve to the left
a. True b. False Indicate whether the statement is true or false
Which are contractionary fiscal policies?
a. Increased taxation and decreased government spending b. Increased taxation and increased government spending c. No change in taxation and increased government spending d. Decreased taxation and no change in government spending
An unexpected increase in aggregate demand
A. causes the price level to fall. B. the unemployment rate to rise. C. causes the price level to rise. D. both the unemployment rate and the price level to rise.