A tax cut targeted at ____ people may have a bigger effect because
a. poorer; poorer people tend to spend a higher share of their income
b. poorer; poorer people tend to spend a lower share of their income.
c. wealthier; wealthier people tend to spend a higher share of their income.
d. wealthier; wealthier people tend to spend a lower share of their income.
a
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What makes the macroeconomic performance of the 1993 to 1998 period so unusual is the
A. simultaneous occurrence of unemployment and inflation increases. B. simultaneous occurrence of real GDP decreases and inflation rate increases. C. occurrence of real GDP decreases while the unemployment rate increases. D. simultaneous occurrence of reduced unemployment rates and falling inflation rates.
Extrapolative expectations work when prices are rising, but not when prices decline.
Answer the following statement true (T) or false (F)
All of the following illustrate how government can correct for positive externalities EXCEPT
A. regulation. B. government financing and production. C. charging effluent fees. D. subsidies.
Illustrate and explain the effects of tax reduction and simplification using the dynamic aggregate demand and supply model. To simplify the analysis, assume that aggregate demand is not affected by the tax cut
What will be an ideal response?