An increase in the average tax rate that ________ the budget deficit in an example of ________
A) raises, automatic stabilization
B) raises, discretionary fiscal policy
C) lowers, automatic stabilization
D) lowers, discretionary fiscal policy
D
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Consider the perfectly competitive firm in the above figure. The shutdown point occurs at a price of
A) $11.00. B) $12.00. C) $16.00. D) $22.00.
In a closed economy
A) I = Y - C - G. B) I = Y + C - G. C) I = Y + C + G. D) I = Y - C + G.
The idea that the long-run Phillips curve is
a. vertical stems from the analysis of Samuelson and Solow. b. vertical stems from the analysis of Friedman and Phelps. c. vertical was disproved by the experiment that monetary and fiscal policymakers inadvertently created in the 1970s. d. downward-sloping can be correct if unemployment responds very quickly to unexpected inflation.
If the long-run supply curve slopes upward, we know that this is
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which no input prices change as firms enter and exit the industry.