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Devry ECON 312 Week 5 Weekly Assignment - Latest
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Devry ECON 312 Week 5 Weekly Assignment - Latest
1. (TCO 6) Discretionary fiscal policy refers to (Points : 1)
any change in government spending or taxes that destabilizes the economy.
the authority that the President has to change personal income tax rates.
intentional changes in taxes and government expenditures made by Congress to stabilize the economy.
the changes in taxes and transfers that occur as GDP changes.
Question 2.2. (TCO 6) An economist who favors smaller government would recommend (Points : 1)
tax cuts during recession and reductions in government spending during inflation.
tax increases during recession and tax cuts during inflation.
tax cuts during recession and tax increases during inflation.
increases in government spending during recession and tax increases during inflation.
Question 3.3. (TCO 6) The financing of a government deficit increases interest rates and, as a result, reduces investment spending. This statement describes (Points : 1)
the supply-side effects of fiscal policy.
built-in stability.
the crowding-out effect.
the net export effect.
Question 4.4. (TCO 5) Which of the following would not shift the aggregate supply curve? (Points : 1)
An increase in labor productivity
A decline in the price of imported oil
A decline in business taxes
An increase in the price level
Question 5.5. (TCO 6) Menu costs (Points : 1)
increase during recession.
decrease during recession.
are the costs to firms of changing prices and communicating them to customers.
are sunk...