If the fiscal policy makers aim to increase aggregate demand, they will likely enact:
A. expansionary fiscal policy.
B. contractionary fiscal policy.
C. expansionary monetary policy.
D. contractionary monetary policy.
A. expansionary fiscal policy.
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The decade of the 1920s was characterized by which of the following?
(a) Economic advancements in agriculture (b) A decrease in the inequality of income and wealth (c) Consumers dramatically shifted their household demands into purchases of durable goods on credit (d) All of the above characterized the decade of the 1920s
Why was the Munn v Illinois (1877) court case particularly important with regard to government regulation?
(a) It upheld the traditional right of businesses to act freely without interference by government. (b) It established the right of government at any level to regulate any business activity if it was deemed desirable for any reason. (c) It established the right of government to regulate any and all businesses wherever it was deemed desirable to promote competition. (d) It established the right of government to regulate any business that had become "clothed in the public interest."
When would you expect economic profits in an industry to be zero? a. When firms are entering the industry
b. When firms are leaving the industry. c. When existing firms are growing. d. When firms have no incentives to enter or exit.
In the long run, what determines the value of money?
A) real GDP B) money market equilibrium C) the government budget balance D) international trade E) equilibrium in the loanable funds market