There is general agreement among economists that a proposed fiscal policy should be evaluated for its:
A. Contribution to the purpose of "fine-tuning" the economy
B. Contribution to the growth of exports and imports in the economy
C. Potential positive and negative effects on long-run productivity growth
D. Potential positive and negative effects on short-run business indebtedness
C. Potential positive and negative effects on long-run productivity growth
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Potential GDP
A) might either increase or decrease as the price level increases, depending on whether aggregate demand increases or decreases. B) decreases as the price level increases because people demand fewer goods and services. C) is independent of the price level. D) increases as the price level increases because firms supply more goods and services. E) never changes.
Demand for the Brazilian real is
A) determined by how well the real maintains its value. B) a function of the Brazilian banking system. C) derived from the supply of U.S. dollars. D) derived from the demand for Brazilian goods.
(Advanced analysis) Answer the question on the basis of the following information. The demand for commodity X is represented by the equation P = 100 - 2Q and supply by the equation P = 10 + 4Q. Refer to the given information. The equilibrium price is:
A. $50. B. $70. C. $80. D. $130.
"Final goods and services" are those that are
A. double counted in the calculation of GDP. B. used in the production of other goods and services. C. produced outside of the United States. D. sold to the ultimate or final purchasers.