Author Question: Fiscal policy: a. uses the federal government's powers of spending and taxation to affect ... (Read 112 times)

sjones · **on:** Jun 30, 2018

Fiscal policy:
a. uses the federal government's powers of spending and taxation to affect employment, the price level, and GDP.
b. uses the federal government's control over the money supply and interest rates to affect employment, the price level, and GDP.
c. can affect employment and prices, but not the level of GDP.
d. can affect employment and the level of GDP, but not the price level.
e. is most effective when employed by state governments rather than by the federal government.

Question 2

If economic profit is zero, then a normal profit is earned.
a. True
b. False
Indicate whether the statement is true or false