Assume the economy is in short-run equilibrium at a real GDP above its potential real GDP. According to classical theory, which of the following policies should be followed?
a. The Federal Reserve should use open market operations and buy U.S. government securities.
b. The Federal Reserve should not follow a fixed rule
c. The federal government should cut taxes.
d. Fiscal policy and monetary policy should not be activist.
d
Economics
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The study of the efficient allocation of the scarce means of production toward the satisfaction of human wants defines ______________.
Fill in the blank(s) with the appropriate word(s).
Economics
Bill's income is $1,000 and his net taxes are $350. His disposable income is
A. $1,350. B. $750. C. $650. D. -$350.
Economics