If policy makers believe that an inflationary boom is about to begin, the Keynesian view indicates that they should
a. increase the budget deficit.
b. increase government spending and hold taxes constant.
c. decrease government spending and/or raise taxes.
d. hold government spending constant and decrease taxes.
C
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Fiscal policy includes all of the following EXCEPT
A) policies that influence the rate of growth of the quantity of money in circulation. B) changing taxes. C) changing government spending. D) policies that influence aggregate demand.
The above table gives real GDP and the aggregate expenditure schedule. Equilibrium real GDP is
A) $11 billion. B) $12 billion. C) $10 billion. D) $14 billion. E) $13 billion.
The incidence of a tax refers to
A. who actually collects the tax. B. how frequently the tax is collected. C. who bears the economic burden of the tax. D. how the tax affects prices or wages.
Which of the following are two major sources of international law?
a. common law and natural law b. ethical principles and mutual expectations c. international conventions and international custom d. state legislatures and the international legislature