Changing the basis of taxation from income earned to amount spent will
a. necessarily reduce tax revenues.
b. lower effective interest rates on savings.
c. distort incentives to earn income.
d. eliminate disincentives to save.
d
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Assume that after you graduate, you move to a simple economy in which only three goods are produced and consumed: fish, fruit, and meat
Suppose that on January 1, fish sold for $2.50 per pound, meat was $3.00 per pound, and fruit was $1.50 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $1.50 per pound, and meat prices had actually fallen to $2.00. Can you say what happened to the overall CPI, in terms of whether it increased, decreased, or stayed the same? Do you have enough information to calculate the inflation rate? Note, this problem requires no calculation; just state and explain your answers.
Refer to Table 16-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if Congress and the president had taken no action? A) real GDP and potential GDP B) real GDP and the inflation rate C) real GDP and the unemployment rate D) potential GDP and the inflation rate
One of the common arguments against "sweatshops" in developing countries is that wages that the workers are being paid are too low. Commentators often use dollar comparisons to show that, compared to U.S
standards, "sweatshop" workers are paid unfairly low wages. Use what you have read about the supply of labor to examine this argument.
__________ is the set of characteristics, skills and knowledge that distinguishes certain people from novices and less experienced people
a. Expertise b. Imagineering c. Performance d. A value chain