Business taxes increase. What is the impact on aggregate expenditures and income?
A) Both increase.
B) Both decrease.
C) Aggregate expenditure increases and income decreases.
D) Aggregate expenditure decreases and income increases.
B
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If Bob is taxed for each soda he buys, he faces a direct tax.
Answer the following statement true (T) or false (F)
Suppose aggregate demand is increasing over time. Would the modern Keynesian model assume that the price level would always be constant? Explain
What will be an ideal response?
Permanent differentials in resource prices will cause
a. all of the following b. the allocation of fewer resources to lower-paid uses c. the equalization of payments for the same resource in different uses d. no change in the allocation of resources e. the allocation of more resources to higher-paid uses
A newspaper article informs you that most businesses reduced production in the last quarter but also sold from their inventories during the last quarter. Based on this information GDP likely
a. increased. b. decreased. c. stayed the same. d. may have increased, decreased, or stayed the same.