Fiscal Policy Actions That Are Intended to Have Long-Run Effects

question 61

Multiple Choice

Fiscal policy actions that are intended to have long-run effects attempt to increase ________ through changing ________.

• A)aggregate demand; government spending
• B)aggregate supply; taxes
• C)aggregate demand; taxes
• D)aggregate supply; government spending

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Definitions:

Sealed-Bid

A method of auction where all bidders submit their bids in secret, with the highest bid usually winning without others knowing the bid amounts.

Lemons

In economics, refers to a market problem where sellers have more information than buyers regarding the quality of goods, leading to adverse selection. Also, a citrus fruit.

Expected Value

A statistic that calculates the average outcome of a random event when the process is repeated many times, useful in decision-making and risk assessment.

Dipstick

A tool used for measuring the quantity or level of fluid within a container, commonly used in vehicles to check oil levels.