The effect of a change in taxes is less than the same sized change in government purchases because...
What will be an ideal response?
the amount by which consumption initially changes is the MPC times the tax change
Economics
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Which of the following is not a type of leakage from the circular flow of income?
a. saving. b. imports. c. investment. d. taxes.
Economics
Strategic trade policy relies on threats of protectionism to protect free trade
a. True b. False Indicate whether the statement is true or false
Economics
Which of the following would cause prices and real GDP to rise in the short run?
a. short-run aggregate supply shifts right b. short-run aggregate supply shifts left c. aggregate demand shifts right d. aggregate demand shifts left
Economics
Which of the following would most likely increase the demand for peanut butter?
What will be an ideal response?
Economics