A government using fiscal policy in an attempt to stimulate the economy would do which of the following?
What will be an ideal response?
raise government spending
You might also like to view...
Consider two goods: peanut butter and jelly. If the price of jelly increases from $2 a jar to $3 per jar and the quantity demanded of peanut butter decreases from 50 jars to 45 jars, what is the cross elasticity of demand? Are the goods substitutes
or complements?
If companies decrease investment spending because of lower expected returns on projects, forecasters should anticipate (everything else the same) that
A) GDP will rise. B) the money supply will fall. C) interest rates will fall. D) saving will increase.
In response to a negative income tax, the substitution of leisure for income could be great enough to reduce total income
a. True b. False
An increase in the cost of training to acquire a skill, which must be paid by the worker,
a. increases both the supply of and demand for labor in that market b. decreases both the supply of and demand for labor in that market c. increases the supply of labor and decreases the demand for labor in that market d. decreases the supply of labor and increases the demand for labor in that market e. decreases the supply of labor only in that market