A major complication with fiscal policy to control aggregate demand is the
a. inability to agree on macroeconomic goals.
b. accuracy of modern forecasting models.
c. inability to change aggregate demand with fiscal tools.
d. constantly changing investment and net exports because of other events.
d
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In consumer equilibrium, Harold consumes pizza, sodas, and other goods. Pizza and soda are complements for Harold. The price of a pizza rises while his income remains the same. Harold then consumes
A) more pizza and less soda. B) more pizza and more soda. C) less pizza and less soda. D) less pizza and more soda.
Which of the following statements is true?
A) Trade-offs do not apply when the consumers purchase a product for which there is excess supply, such as with a stock clearance sale. B) Economics is a social science that studies the trade-offs we are forced to make because resources are unlimited. C) Every individual, no matter how rich or poor, is faced with situations that require trade-offs. D) Any time you have to decide which action to take you are experiencing economic equity.