Question

28. Fiscal policy refers to changes in _____ to affect overall spending in the economy

a. interest rates and of government spending

b. government spending and taxation

c. interest rates

d. the quantity of money

29.

In August 2005, Hurricane Katrina damaged or destroyed oil platforms in the Gulf of Mexico, refineries along the Gulf coast, and the pipeline infrastructure that transports oil and gas to customers across the eastern United States. The winter of 2006 was unusually cold in many parts of the country. How did these events affect the market for natural gas? (Explain which curve(s) shift(s) and the effects on the equilibrium quantity and equilibrium price of natural gas.)

30. Suppose that the annual nominal rate of interest is 7% and the actual annual inflation rate is 3%. The annual actual real rate of interest is

a. 4%.

b. 10%.

c. 3%.

d. 7%.

31. In 2000, a Transylvanian doctor, Dr. Frank N. Stein, earned a nominal income of $60,000 and the Transylvanian CPI was 100. In 2004, Dr. Stein earned a nominal income of $80,000 and the CPI was 140. Which of the following is true?

a. Dr. Stein’s real income (purchasing power) was greater in 2000 than in 2004.

b.Dr. Stein's real income (purchasing power) was the same in 2004 as it was in 2000.

c. The Transylvanian cost-of-living increased by 20% between 2000 and 2004.

d. Dr. Stein’s real income (purchasing power) was lower in 2000 than in 2004.

Answer 1

28) (b) government spending and taxation

Fiscal policy is the use of the government budget to affect an economy. So the correct option is b.

Please post the other questions separately. Thanks and good luck :)