Suppose that the economy is currently at full employment. All other things being equal, if central bank implements contractionary policy, then the appropriate fiscal policy is to
a. increase taxes.
b. reduce government spending.
c. balance the budget.
d. increase a budget deficit.
d
Economics
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Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. The base year is 2012. In 2013, which is larger, nominal GDP or real GDP?
A) Both are the same size. B) Nominal GDP is larger. C) Real GDP is larger. D) The answer is ambiguous. E) More information is needed to determine which is larger.
Economics
When tariffs on imports are eliminated, everyone benefits.
Answer the following statement true (T) or false (F)
Economics