An example of expansionary fiscal policy would be
A) a decrease in government spending to reduce budget deficits.
B) an increase in tax collection to reduce budget deficits.
C) a decrease in interest rates to help stimulate the economy.
D) an increase in government spending on infrastructure to create jobs and improve the economy.
E) an increase in interest rates to encourage private savings.
D
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The barrier to entry that allowed Alcoa to make persistent economic profits was ownership of an essential input
Indicate whether the statement is true or false
In the classical model, a basic theoretical feature of self-regulating markets was that
a. unsold inventory and labor unemployment would cause prices and wages to increase. b. lower wages and prices would eliminate unemployment and unsold inventory. c. unsold inventory would never occur. d. an increase in planned saving would cause an increase in the interest rate and a decrease in investment.