The effectiveness of expansionary fiscal policy is directly proportional to the level of _______ in the economy.

Refer to Figure 18.3. In autarky, the maximum amount of pogo sticks that Livonia can produce is

A) 120. B) 100. C) 80. D) 40.

For each of the following policy options the government can undertake to make the debt sustainable, explain the economic consequences and the resulting change to potential GDP: a. increasing seigniorage b. increasing taxes on wages c

increasing taxes on capital income d. decreasing expenditure on government capital goods e. decreasing expenditure on transfer programs such as Social Security, Medicare, and Medicaid