Two drawbacks in using fiscal policy as a stabilization tool are that fiscal policy can affect ________ as well as aggregate demand and that fiscal policy is ________.

Economic decline (negative growth) is represented on a production possibilities frontier model by the production possibility frontier

A) shifting inward. B) becoming flatter. C) shifting outward. D) becoming steeper.

The threat of a large fine for failure to pay income taxes is an example of

A) the excessive power of the Internal Revenue Service. B) the ineffectiveness of incentives to get people to pay their taxes. C) a negative incentive to get all people to pay taxes. D) people failing to consider all the benefits the government provides them.