Which of the following is an example of active fiscal policy?
a. Income tax revenues rise in an inflationary period.
b. Income tax revenues fall in a recession.
c. Congress passes a major tax increase in an inflationary period.
d. Unemployment benefits increase in a recession.
c
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The demand for labor curve
A) is downward sloping because productivity of labor diminishes as more workers are employed. B) is upward sloping and the supply curve of labor is downward sloping. C) is upward sloping because productivity of labor diminishes as more workers are employed. D) shifts rightward when the real wage rate rises.
Suppose the supply of non-OPEC oil increases due to new petroleum discoveries in other countries. What happens to the price of oil on the world market?
A) Increases B) Decreases C) Remains the same D) We do not have enough information to answer this question.