Which of the Following Is True

question 144

Multiple Choice

Which of the following is true?

• A)The expansionary fiscal policy of the 1980s stimulated aggregate demand and led to high rates of inflation during the latter half of the decade.
• B)The restrictive fiscal policy of the 1990s led to sluggish economic growth during the decade.
• C)Even though fiscal policy was highly expansionary during the 1980s,the inflation rate fell and remained at relatively low levels.
• D)Even though fiscal policy was restrictive during the 1990s,the real growth rate of the economy was strong.
• E)Both c and d are true.

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not reduce availability for others.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to all members of society and one person's consumption does not reduce availability for others.

Common Resources

Resources that are freely accessible to all members of a society but are subject to overuse and depletion because they are not privately owned.

Market Outcomes

The results of interactions between consumers and producers in a market, including prices, quantities of goods and services produced and consumed, and allocation of resources.