The government’s fiscal policy is its plan to influence aggregate demand by changing
A. the money supply.
B. minimum wage levels.
C. sales taxes.
D. taxation and spending.
Answer: D
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In the above table, the number of marginally attached workers is
A) 40 million. B) 55 million. C) 15 million. D) 100 million.
If the interest rate rises, the present value of property rises because the return is now higher
Indicate whether the statement is true or false
If the economy is experiencing inflation, then the most appropriate government policy would be to:
A. shift the aggregate demand curve by using a tax increase coupled with spending cuts. B. shift the aggregate demand curve by using a tax increase coupled with more spending. C. shift the aggregate demand curve by using a tax cut coupled with spending cuts. D. shift the aggregate supply curve by using a tax cut coupled with more spending.
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna can only set one price, what price should she set?
a. $100 b. $70 c. Any price higher than $100 d. Any price lower than $70