An example of tax smoothing is provided by evidence of
A) temporary changes in defense expenditures by the government.
B) reductions in tax rates prior to presidential elections.
C) Keynesian tax cuts designed to help the economy recover from a recession.
D) reliance on debt financing rather than taxation during World War II.
D
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An upturn in business confidence may cause firms to ________ their estimates of MPK, leading to a ________ capital stock that matches MPK to the user cost of capital and thus ________ of net investment
A) lower, larger, a contraction B) lower, larger, an expansion C) lower, smaller, a contraction D) raise, smaller, a contraction E) raise, larger, an expansion
The system we use to measure the value of an economy is called:
A. national income accounting. B. national economic valuation. C. macroeconomic summation. D. national expenditure accounting.
Which of the following would cause price to increase?
a. an increase in supply b. a decrease in demand c. a surplus of the good d. a shortage of the good
Refer to the supply and demand graph below. In the graph, line S is the current supply of this product, while line S1 is the optimal supply from the society's perspective. If government corrects this externality problem and shifts production to the
socially optimal level, then the product price will be equal to:
A. 0G
B. 0F
C. 0E
D. 0D