If the economy was about to enter an inflationary boom, which of the following would be the most appropriate policy?
a. A tax increase.
b. A decrease in government spending.
c. An increase in government spending.
d. A tax decrease.
a
Economics
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When supply is written as Q = c + dP and P and Q are the equilibrium values for price and quantity, which of the following is the value of the price elasticity of supply, ES?
A. -c/d B. c(P/Q) C. -d/c D. d(P/Q)
Economics
In the simple circular flow model, the funds received by a carmaker when it sells a car goes to
A) only the owners of the carmaker. B) the owners of all of the resources used to make the car. C) the workers who helped build the car. D) the owners of firms who sold materials to the carmaker, and the rest stays with the firm.
Economics