Third parties do not elect large numbers of candidates in democratic countries with majority rule elections
a. True b. False
a
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Suppose policy makers pass a budget that results in a reduction in government spending and no change in taxes. This reduction in government spending will likely
A. reduce interest rates, increase in planned investment, and increase real GDP. B. reduce interest rates and increase planned investment. C. generate extra tax revenues to cover the extra spending. D. increase government borrowing and increase interest rates.
Positive Econ Statements
What will be an ideal response?
The growth accounting equation suggests that the growth rate of output is equal to the growth rate of ________
A) total factor productivity plus the contributions of both capital and labor B) total factor productivity minus the rate of depreciation C) capital and labor D) the overall population
Why did President Obama want to repeal the Bush era tax cuts on upper income taxpayers? How would the repeal of these tax cuts impact aggregate demand and to what degree? How did the economic conditions in 2010 make such a repeal less likely to take place?