When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation, such policy is
A. automatic fiscal policy.
B. active monetary policy.
C. active federal policy.
D. discretionary fiscal policy.
Answer: D
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Which of the following statements is correct?
A. Theory and hypothesis are interchangeable terms for the same thing. B. A hypothesis may result from a tested and confirmed theory. C. A theory may result from a tested and confirmed hypothesis. D. A hypothesis is a theory whose formulation relies on mathematics.
Round Things, Inc.'s production process exhibits economies of scale. Currently its long-run average total cost is $1/unit. If Round Things doubles its use of all inputs, its new long-run average total cost will be
A. $1/unit. B. greater than $1/unit but less than $2/unit. C. greater than $2/unit. D. less than $1/unit.
The U.S. system of national income accounts was started in the
a. late 1800s to measure the effects of rapid industrialization b. mid-1910s to measure the effects of World War I on the economy c. early 1930s to keep track of national income and output d. early 1940s to keep track of output during World War II e. early 1950s to measure changes in post-World War II output and income
The portion of food and expenditures associated with activities of firms beyond the farm gate is known as
A) value added. B) consumer surplus. C) the marketing bill. D) none of the above.