Contractionary fiscal policy:
What will be an ideal response?
: reductions in government spending or transfer payments or increases in taxes, leading to a lower level of economic activity (chapter 10 page 236)
Economics
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According to new classical economists,
a. deficits should have a large and negative impact on output. b. deficits should have no discernable impact on output. c. deficits will have no impact on private consumption. d. growth in the 1990s was driven by falls in the deficit. e. None of the above
Economics
In theory, a corrective tax _____ the _____ will create the optimal result
a. equal to; externality b. above; externality c. equal to; price d. above; price
Economics