In general, fiscal policy is used to:
A. make business cycle booms bigger and busts smaller.
B. even out the booms and the busts in the business cycle.
C. to reverse the pattern of booms and busts in the business cycle.
D. make business cycle booms and busts both bigger.
Answer: B. even out the booms and the busts in the business cycle.
Economics
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Which of the following is true?
A) The real interest rate is always positive. B) The nominal interest rate is usually negative. C) The real interest rate can be negative. D) The real interest rate can never be zero. E) The nominal interest rate is usually less than the real interest rate.
Economics
Expansionary and contractionary gaps are automatically eliminated by shifts in aggregate demand
a. True b. False Indicate whether the statement is true or false
Economics