1. The economic system that answers the What, How and For Whom questions using prices determined by the interaction of supply and demand is a: market economy.
An economic system is the organizations and methods used to determine: a. what goods and services are produced. b. how goods and services are produced. c. for whom goods and services are produced. d. all of the above. ____ 2. Which of the following is a basic question by an economic system?
In the context of fiscal policy, most economists agree that: lower taxes can leave more money in people's pockets for them to spend or invest. Which of the following statements is true of the fiscal cliff? It was a package of draconian across-the-board spending cuts.
Unit 1 Macro and Microeconomic Concepts in a Global Context - Marginal Rate of Transformation - Glob
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Whenever the federal government spends more than it receives during a given year, it operates with a Budget Surplus/ Budget deficit. Budget deficit. If federal government spending exactly equals government revenues, then the government experiences a Balanced Budget/ Budget Surplus. Balanced budget.
In the short run, if the economy is at the full employment level of real GDP is at the full employment level of real GDP, an increased government budget deficit resulting from higher government spending or lower taxes is most likely to (2 points)
If you were a Keynesian, assuming activist central banks, you might argue that. increases in the money supply increase the demand, and stimulate the growth of real GDP. According to Keynesian economics, expectations do not adjust quickly, so there can be an impact on output. YOU MIGHT ALSO LIKE...
Terms in this set (17) Keynesian economics is primarily associated with which of the following concepts. an activist federal government. According to Keynesian economics, when the economy is experiencing inflation, he best course of action is to. reduce government spending or increase taxes.
The velocity of money can be defined as. the average number of times a dollar changes hands during the year. According to Milton Friedman, when the economy is experiencing inflation, the best course of action is to. use a monetary rule that accommodates real growth but not inflation.
According to real business cycle theory, business cycles exist primarily because of. shocks to production technology. According to supply-side economics, when the economy is experiencing unemployment, the best course of action is to. cut taxes and increase incentives to save and invest.
Because there are significant lags in recognizing and implementing activist policies, the best government policy is nonintervention. According to new classical economics, when the economy is experiencing inflation, the best course of action is to. do nothing; the economy will return to equilibrium quickly on its own.