Multiple Choice
If the government is running a cyclically adjusted budget deficit,________ fiscal policy is ________ because aggregate expenditure is increasing.
A) discretionary; contractionary
B) discretionary; expansionary
C) expansionary; ineffective
D) contractionary; appropriate
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Expansionary fiscal policy would involve _,whereas contractionary
Q2: If the MPC is 0.8 and the
Q3: Figure 13.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 13.1
Q5: Figure 13.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 13.1
Q6: C = $750 + 0.75(1 - 0.4)Y<br>I
Q7: Other things equal,an increase in corporate income
Q8: Suppose the economy is initially at full
Q9: Suppose you are paid a wage of
Q10: C = $5 million + 0.9(1 -
Q11: Assume the economy is initially in equilibrium