Which of the following can be described as a fiscal policy tool?
Taxes are a fiscal policy tool because changes in taxes affect the average consumer’s income, and changes in consumption lead to changes in real GDP. So, by adjusting taxes, the government can influence economic output. Taxes can be changed in several ways.
Which of the following best describes expansionary monetary policy?
Which of the following best describes how expansionary monetary policy affects the aggregate demand curve in the aggregate demand-aggregate supply model? Expansionary monetary policy directly puts money into the loanable funds market. This lowers the interest rate, which provides a larger incentive for firms to invest.
In which market the households work and receive payment from firms?
In the labor market, households work and receive payment from firms. In the financial capital market, households provide financial capital—that is, savings and financial investment— while firms pay them for that capital by providing a rate of return—for example, an interest payment.
Which of the following is most likely a topic of discussion and macroeconomics?
Which of the following is most likely a topic of discussion in macroeconomics? broad issues such as national output, employment and inflation.
What is monetary policy tools?
Central banks have four main monetary policy tools: the reserve requirement, open market operations, the discount rate, and interest on reserves. 1 Most central banks also have a lot more tools at their disposal. Here are the four primary tools and how they work together to sustain healthy economic growth.
What is an expansionary monetary policy?
Expansionary monetary policy works by expanding the money supply faster than usual or lowering short-term interest rates. It is enacted by central banks and comes about through open market operations, reserve requirements, and setting interest rates.
Which of the following are most likely classified by economists as consumer durable goods?
Automobiles and furniture have long. Time use and consumers don’t frequently purchase it, so these are durable goods.
Which of the following best describes the opportunity cost of an action?
The Option c is correct
Opportunity cost best describes when the difference between the value of the next best alternative forgone and the alternative selected is calculated.
How is marginal thinking best demonstrated?
Marginal thinking is best demonstrated by: … choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time.
Which is the best description GDP quizlet?
Gross domestic product is equal to the market value of all final goods and services: produced domestically during a period. Gross domestic product is the sum of the purchase price multiplied by the quantity of: final goods and services produced domestically during the period.
How do economists typically measure economic growth?
Economic growth is defined as the increase in the market value of the goods and services produced by an economy over time. It is measured as the percentage rate of increase in the real gross domestic product (GDP). To determine economic growth, the GDP is compared to the population, also know as the per capita income.
Which is the best description GDP?
Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate.
Which term best describes a country with a high GDP?
What term best describes a country with a high per capita GDP? Developed country.
What is the best way to measure economic welfare?
Economic welfare is usually measured in terms of real income/real GDP. An increase in real output and real incomes suggests people are better off and therefore there is an increase in economic welfare.
Which of the following is the best measure of economic growth?
Economic growth is the increase in the value of an economy’s goods and services over time. Real gross domestic product is the best way to measure economic growth, because it removes the effects of inflation.
Which of the following is the best measure of a country’s increase in economic prosperity?
The most comprehensive measure of overall economic performance is gross domestic product or GDP, which measures the “output” or total market value of goods and services produced in the domestic economy during a particular time period.
How would you define economic welfare?
Broadly, economic welfare is the level of prosperity and standard of living of either an individual or a group of persons. In the field of economics, it specifically refers to utility gained through the achievement of material goods and services.
What is the welfare approach in economics?
Welfare economics seeks to evaluate the costs and benefits of changes to the economy and guide public policy toward increasing the total good of society, using tools such as cost-benefit analysis and social welfare functions.