When the economy enters a prosperity phase, personal income tax collections
a. fall along with consumption and real GDP
b. rise along with real GDP but unemployment insurance payments to workers fall
c. rise but real GDP and unemployment insurance payments to workers fall
d. fall along with real GDP but unemployment insurance payments to workers rise
e. fall causing real incomes and employment to fall
C
You might also like to view...
A cost incurred in the production of a good or service and for which the firm does not need to make a direct monetary payment, is referred to as ________ cost
A) a minimized B) a maximized C) an explicit D) an implicit E) an invisible
It may be demonstrated that any protectionist policy, which effectively shifts real resources to import competing industries or sectors will harm export industries or sectors. This may, for example, happen by the strengthening U.S
dollar in the foreign exchange market. Would you propose therefore that export industries lobby against protectionism in International Trade Commission proceedings? What of consumer advocates? Discuss the pros and the problems of such a suggestion.
A subgame-perfect equilibrium is a Nash equilibrium that
a. cannot persist through several periods. b. involves only credible threats. c. consists only of dominant strategies. d. is unique.
If the government announces a big tax cut, which of the following combinations of events would be most likely to occur?
a. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve b. A downward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a leftward shift of the aggregate demand curve c. An upward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a rightward shift of the aggregate demand curve d. A downward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve e. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a leftward shift of the aggregate demand curve.