Which of the following demonstrates one of the three principles of economy-wide interactions?
A)A student chooses to rent a movie with friends rather than study for an economics quiz.
B)Your roommate offers to pay for the movie tickets if you drive to the theater.
C)A city builds a new public park on the grounds of an abandoned warehouse.
D)In 2008, fearing a recession, Congress approved a White House proposal to rebate some taxes for 2007.

Question

Quizplus · Accepted Answer

The passage describes Congress approving a White House proposal to rebate some taxes in 2008, which is an example of government intervention in the economy and the use of fiscal policy to stimulate economic growth. This demonstrates one of the three principles of economy-wide interactions, which is that changes in government policies can have significant impacts on the economy as a whole.

Which of the Following Demonstrates One of the Three Principles