Fiscal Policy Refers to

question 7

Multiple Choice

Fiscal policy refers to

• A) changes in the amount of government expenditures and taxes to achieve particular economic objectives.
• B) changes in the composition of a given amount of government expenditures to achieve particular economic objectives.
• C) changes in interest rates initiated by government action.
• D) any change in government spending or taxes that has the intended effect of destabilizing the economy.

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Definitions:

Median Earnings

The middle value of earnings in a group, indicating that half of the group earns more and half earns less than this amount.

Private Businesses

Enterprises owned, operated, and managed by individual entrepreneurs, groups, or families, primarily for profit, without state control.

Working Conditions

The environment, terms, and circumstances under which employees work, including aspects like hours, safety, rights, and wages.

Marginal Productivity

The additional output produced as a result of employing one more unit of a factor of production, holding all other factors constant.