Fiscal policy refers to the:
A. deliberate changes in government spending and taxes to stabilize domestic output,
employment, and the price level.
B. deliberate changes in government spending and taxes to achieve greater equality in the
distribution of income.
C. altering of the interest rate to change aggregate demand.
D. fact that equal increases in government spending and taxation will be contractionary.
A. deliberate changes in government spending and taxes to stabilize domestic output,
employment, and the price level.
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According to supply-side economists, a cut in taxes will
a. cause people to spend more, causing the aggregate supply curve to shift to the right b. act as a work incentive causing the aggregate supply curve to shift to the right c. encourage people to work more to get more income to spend, causing the aggregate supply curve to shift to the left d. encourage people to work more hours and be more productive, causing the society to move upward along the aggregate supply curve e. increase private and reduce government spending so that aggregate demand remains fairly constant
Generally, specialization leads to
A) constant opportunity costs. B) greater productivity. C) reductions in people's skill levels. D) greater self-reliance.