Since income tax revenues will rise (fall) as expenditures and output increase (decrease) the income tax results in
A) a reduction in the multiplier effect on GDP of autonomous expenditures.
B) automatic stabilization of GDP.
C) A and B.
D) None of the above.
C
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The IS curve will shift down and to the left when
A) desired saving declines. B) government purchases increase. C) consumption increases. D) the expected future marginal product of capital declines.
Prospect theory:
A. is an alternative to expected utility theory that may resolve a number of puzzles related to risky decisions and was proposed by Daniel Kahneman and Amos Tversky. B. gave puzzling results with respect to risky decisions and was improved by Daniel Kahneman and Amos Tversky's expected utility theory. C. is an alternative to expected utility theory that may resolve a number of puzzles related to risky decisions and was proposed by John Nash. D. gave puzzling results with respect to risky decisions and was improved by John Nash's expected utility theory.
The ____ is at the center of the market process
A) managers B) shareholders C) entrepreneur D) none of these choices.
Command-and-control legislation, as compared to incentive-based regulation:
A. encourages the use of comparative advantage in the short run, and the development of new technology in the long run. B. encourages the use of comparative advantage in the short run, but discourages the development of new technology in the long run. C. discourages the use of comparative advantage in the short run, but encourages the development of new technology in the long run. D. discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run.