Multiple Choice
The federal government attempts to control business cycles because:
A) increases in economic activity could lead to inflation.
B) decreases in economic activity lead to reduced output.
C) decreases in economic activity lead to higher unemployment.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q23: If government purchases increased by $30 billion,
Q24: The multiplier effect:<br>A) equals the change in
Q25: Fiscal policy involves:<br>A) taxes.<br>B) transfer payments.<br>C) government
Q26: Why does a change in non-income-determined spending
Q27: The expectation of inflation has no effect
Q29: Which of the following statements is true?<br>A)
Q30: Spending by businesses on newly produced goods
Q31: The change in total output that occurs
Q32: Why would the level of economic activity
Q33: Net exports is positive when:<br>A) transfer payments