Which of the following is true of the Golden Age of fiscal policy of the 1960s?
a. Fiscal policy was used to prevent output from expanding in 1964.
b. Lyndon B. Johnson cut income tax rates to reduce inflationary pressures in the economy
c. A tax cut was introduced to increase savings and unemployment.
d. A tax cut increased disposable income and consumption.
e. The unemployment rate rose by 5 percent for the first time in seven years
Question 2
Depreciation refers to a decrease in the value of a durable good caused by:
a. an increase in the price level.
b. changes in the interest rate.
c. wear and tear over time.
d. changes in tax laws.
e. a decrease in its resale value.
