1. The term fiscal policy refers to
a. the use of fines to penalize unfair business practices.
b. the purchase and sale of U.S. government securities to regulate the money supply.
c. the adjustment of the GDP for inflation.
d. a policy action by Congress to overrule unpopular budget cuts by the president.
e. the use of government spending and taxation to influence the level of economic growth and inflation.
2. In the long-run, if prices of all resources remain unchanged, when a firm doubles all resources the quantity of output more than doubles, the firm is experiences
a. constant returns to scale.
b. diseconomies of scale.
c. economies of scale.
d. minimum efficient scale.
e. increasing marginal physical produce.