FINAL EXAM Discretionary fiscal policy refers to: changes in taxes and government expenditures made by Congress to stabilize the economy. A $70 price tag on a sweater in a department store window i

FINAL EXAM Discretionary fiscal policy refers to: changes in taxes and government expenditures made by Congress to stabilize the economy. A $70 price tag on a sweater in a department store window i

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Discretionary fiscal policy refers to: changes in taxes and government expenditures made by Congress to stabilize the economy.

A $70 price tag on a sweater in a department store window is an example of money functioning as a: unit of account.

A contractionary fiscal policy is shown as a: leftward shift in the economy's aggregate demand curve

Banks create money when they: exchange checkable deposits for the IOU's of businesses and individuals.

Contractionary fiscal policy is so named because it: is aimed at reducing aggregate demand and thus achieving price stability.