If government policy makers were worried about the inflationary potential of the economy, which of the following would not be a correct fiscal policy change?
a. Increase consumption taxes
b. Increase government purchases of goods and services.
c. Decrease government purchases.
d. None of the above.
b
Economics
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What adjusts to restore general equilibrium after a shock to the economy?
A) The LM curve B) The IS curve C) The FE line D) The labor supply curve
Economics
A person is calculating his permanent income by adaptive expectations. Last year's permanent income was 38,000, this year's actual income is 44,000, and j = 0.25. This year his permanent income is
A) 39,500. B) 42,500. C) 59,000. D) 20,500
Economics