Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect
Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________.
A) more; less B) less; less C) more; more D) less; more
D
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In the figure above, when the market is in equilibrium, marginal benefit ________ marginal cost, so the quantity of pizza produced is ________
A) equals; efficient B) exceeds; efficient C) is below; efficient D) is below; not efficient E) exceeds; not efficient
Interruptible service pricing is very different from peak-load pricing
Indicate whether the statement is true or false
Over the elastic portion of a demand curve, a decrease in price causes:
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue. d. an increase in quantity demanded, but anything can happen to revenue.
Currently, total government expenditures in the United States have totaled about:
a. one-tenth of GDP. b. one-fifth of GDP. c. 40 percent of GDP. d. one-half of GDP.