Rather than seeking to balance the budget, Keynesian economists argue that the government's tax and spending policies should be determined by the
a. demand for government-provided public goods.
b. level of aggregate demand required to achieve full employment of resources.
c. size and quality of the labor force.
d. need to expand or contract the supply of money.
B
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The retirement effect is
A. when people retire later than they normally would have due to Social Security. B. when people decide not to retire at all because of problems with Social Security. C. when people retire earlier than they normally would have due to Social Security. D. when people save less for their retirement due to Social Security.
Answer the question on the basis of the following data. All figures are in billions of dollars. Gross Investment 18 National Income 100 Net Exports 2 Personal income 85 Personal Consumption Expenditures 70 Saving 5 Government Purchases 20 Net Domestic Product 105 Statistical Discrepancy 0 Refer to the above data. Consumption of fixed capital is:
a) $5. b) $10. c) $20. d) $30.
A decrease in the rate of inflation will increase the rate of unemployment.
Answer the following statement true (T) or false (F)
The Federal tax system is:
A. Proportional while state and local tax structures are largely progressive B. Progressive while state and local tax structures are largely regressive C. Regressive while state and local tax structures are largely proportional D. Regressive while state and local tax structures are largely progressive