Which of the following fiscal policy actions would definitely cause a reduction in the size of an inflationary gap?
A) cuts in taxes and increases in government spending
B) increases in government spending
C) increases in taxes
D) cuts in taxes
Ans: C) increases in taxes
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List two ways the labor force experience is different between workers in Europe and in the United States. How do these differences influence productivity?
What will be an ideal response?
Which of the following is not an obstacle to achieving environmental efficiency through markets?
a. Transactions costs. b. Income effects. c. Free-rider problems. d. Private negotiations.
The Bush tax cuts of 2001-2010 reduced
A. The marginal tax rate for the highest income class to 10 percent. B. Incentives for education. C. Vertical inequities. D. The top marginal tax rate from 39.6 percent to 35 percent.
Which of the following terms refers to provisions in a law or a contract whereby monetary payments are automatically adjusted whenever a specified price index changes?
A. Contango B. Swap C. Averaging D. Indexing