To counteract relative price changes, the government would implement:
A. polices that affect the supply and demand for a specific good.
B. fiscal policy.
C. monetary policy.
D. policies that affect the supply and demand for all goods and services.
Answer: A
Economics
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Stable money and prices are a key source of economic growth because
a. they allow activist policymakers to fine tune the economy. b. uncertainty and instability in prices will attract investors and business decision makers. c. price instability increases capital formation. d. price stability reduces the risks that accompany investment and other long-term commitments.
Economics
The excess burden of a tax is $5,000 and the tax revenue from this tax is $15,000. The total burden of this tax is
A. $3,000. B. $5,000. C. $10,000. D. $20,000.
Economics