Policy tools to influence the macroeconomy include
A. Wars, natural disasters, and trade disruptions.
B. Tax policy, government spending, and the availability of money.
C. External shocks and internal market forces.
D. Population growth, spending behavior, and invention.
Answer: B
You might also like to view...
Contracts are: a. are command-based systems in which prices usually play a relatively small role. b. a set of promises intended to create economic value and enforceableby a court or some other agency, such as an arbitrator
c. are a mode of governance that facilitate the purchase and sale of standardized goods or services, often in repeated transactions. d. economic institutions that can greatly ease the process by which a transaction moves from proposal to commitment.
Changes in relative prices usually lead to increases in real income because prices have changed
a. True b. False Indicate whether the statement is true or false
Which account of the balance of payments is most likely to be directly affected by a rise in the domestic price level?
a. Current international transactions b. Net nonreserve-related international borrowing/lending c. Official reserve-related (central bank) transactions d. None.
Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. Other things equal, a shift of the supply curve from S 0 to S 1 might be caused by a(n):
A. increase in the wage rates paid to laborers employed in the production of X.
B. government subsidy per unit of output paid to firms producing X.
C. decline in the price of the basic raw material used in producing X.
D. increase in the number of firms producing X.