Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. Which of the policies below could lead to these shifts?
i. An increase in government expenditure
ii. A tax cut
iii. A decrease in government expenditure
iv. A tax hike
A) iv only B) i and ii C) i and iv D) i only E) iii and iv
B
You might also like to view...
Which of the following is a reason for the success that firms have in getting the government to erect barriers to foreign competition?
A) The costs from free trade are greater than the benefits. B) The jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify. C) People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote. D) Firms that are harmed by trade barriers have less money to lobby government officials to eliminate the barriers than do firms that benefit from trade barriers.
Between 1820 and 1860, cotton output per slave:
a. remained fairly stable. b. increased by about 10 percent. c. increased by fourfold or more. d. decreased slightly.