In Practice, Discretionary Changes in Fiscal Policy Have Offset Booms

question 39

True/False

In practice, discretionary changes in fiscal policy have offset booms and recessions.

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Definitions:

Pure Rent

Pure Rent refers to the income earned from the use of land or other natural resources when supply is perfectly inelastic.

Fixed Supply

A situation where the quantity of a good available is constant and does not change in response to price changes.

One-Of-A-Kind

Unique, without any identical counterpart.

Pure Rent

Payment to a factor of production (land, specifically) in excess of what is needed to keep it in its current use.