Q 12 , 13, 14 * Deliberate changes in government expenditures and taxes to influence GDP...
Q 12 , 13, 14
*
Deliberate changes in government expenditures and taxes to influence GDP
A.
are enacted by the Council of Economic Advisers.
B.
are examples of automatic fiscal policy because the politicians automatically respond.
C.
operate without time lags.
D.
are forms of discretionary fiscal policy.
-----------------------------------------
The term "stagflation" refers to the situation when
A.
real GDP and the price level both rise because of an increase in aggregate demand.
B.
prices become stagnant and do not increase or decrease.
C.the
shortminus−run
aggregate supply curve and the aggregate demand curve shift in opposite directions.
D.
the aggregate supply curve shifts leftward, prices increase and real GDP decreases.
---------------------------------------------------------------
An increase in the income tax rate ________ employment and ________ potential GDP.
A.
increases; decreases
B.
decreases; increases
C.
decreases; decreases
D.
increases; increases
Homework Answers
Add Answer to:
Q 12 , 13, 14
*
Deliberate changes in government expenditures and taxes to
influence GDP...
During a recession, if a government uses an expansionary fiscal policy to increase GDP, the: Question...
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Explain the effect of each of the following events on Mexico's aggregate demand. If the government...
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1. If the economy is at full employment, increases in government spending: A) have a multiplier...
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A supply shock is A. an increase in the rate of inflation as a result of expansionary fiscal policy, resulting in a leftward shift of the SRAS curve. B. a sudden increase in the price of an important natural resource, resulting in a leftward shift of the SRAS curve. O C. an increase potential GDP caused by a govemment expenditure multiplier, resulting in a leftward shift of the AD curve. D. an increase in both the inflation and the unemployment...
Explain the effect of each of the following events on Mexico's aggregate demand. If the government of Mexico cuts income taxes, Mexico's aggregate demand O A. increases, and the aggregate demand curve shifts leftward O B. increases, and the aggregate demand curve shifts rightward O C. is unchanged, but the price level falls and quantity of real GDP demanded increases OD. decreases because it decreases the amount the government can spend O E. is unchanged because it just decreases the...
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16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and fewer purchases A decrease in r price level increase tends to reduce net exports, thereby reducing the amount of real goods a. The b. The international banner effect C. rvices purchased in the U.S. Economists refer to this phenomenon as international wealth...
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