Which of the following fiscal policy changes would be the most contractionary?

A. A $40 billion increase in taxes
B. A $20 billion increase in taxes and a $20 billion cut in government purchases
C. A $30 billion increase in taxes and a $10 billion cut in government purchases
D. A $10 billion increase in taxes and a $30 billion cut in government purchases


Answer: D

Economics

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Men and women in a particular industry are equally qualified. If one employer has a preference for male employees, then in the long run

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Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1 per frame levied on picture frames will decrease the effective price received by sellers of picture frames by

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Economics

According to the law of diminishing returns, what will happen if a population increases with no corresponding increase in other resource inputs?

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Economics