What are the two policy options used to influence the economy?
What will be an ideal response?
Fiscal policy relies on the executive and legislative branches of government to make changes in taxes and government spending. Monetary policy under the control of the Federal Reserve can make changes in the money supply and interest rates.
You might also like to view...
Compare the policy prescriptions of Keynesian, Classical, and Monetarist economists
What will be an ideal response?
Define the following terms and explain their importance to the study of macroeconomics:
a. exchange rate b. depreciation c. devaluation d. fixed exchange rates
The task of economic regulation is to:
a. protect monopoly profits.
b. approximate the results of the competitive market.
c. replace competition with government ownership.
d. ensure laissez faire.
e. increase competition within the market.
Economies of scale arise when
A. all inputs increase at the same rate. B. all inputs increase by the same amount. C. one input increases and the others are held constant. D. one input increases and the others decrease.