What is expansionary fiscal policy? What is contractionary fiscal policy?
What will be an ideal response?
An expansionary fiscal policy is a decrease in taxes or an increase in government purchases intended to increase aggregate demand. A contractionary fiscal policy is an increase in taxes or a decrease in government purchases intended to decrease aggregate demand.
You might also like to view...
When people use a recognition heuristic, they often get answers right because the correct answer is usually the one they are familiar with while the incorrect answer is the one which is unfamiliar to them
Indicate whether the statement is true or false
If oligopolistic firms successfully cooperate with each other, _____
a. they may act like a monopoly and increase their prices b. they may act like a monopoly and increase their output c. they may act like perfectly competitive firms and earn normal profits d. they may act like a monopolistic firm and earn economic profits
Which group has the highest poverty rate from among these groups?
A. Children under 18 B. Persons over 65 C. White males D. Members of working class families
Assume the market was in equilibrium in the graph shown. If the market price were set to $6, which of the following is true?
A. For those still interacting in the market, some surplus is transferred from seller to buyer. B. Producers gain the surplus of those buyers who dropped out of the market. C. For those still interacting in the market, some surplus is transferred from buyer to seller. D. Consumers gain the surplus of those sellers who dropped out of the market.