A contractionary fiscal policy
I. decreases a government budget deficit or increases a government budget surplus.
II. includes tax cuts.
III. may include discretionary cuts in transfer payments.
A) I, II, and III
B) I and II only
C) I and III only
D) II and III only
Ans: C) I and III only
Economics
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Indicate whether the statement is true or false
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If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment
A) will increase. B) will remain constant. C) will decrease. D) may increase or decrease.
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