Which of the following statements best describes an effect of tax cuts?
a. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can do not make sense as a way of shifting AD to the left.
b. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts do not make sense as a way of shifting AD to the right.
c. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can make sense as a way of shifting AD to the left.
d. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can make sense as a way of shifting AD to the right.
d. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can make sense as a way of shifting AD to the right.
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New growth theory
A) states that the rate of technological change is caused by economic incentives. B) states that the rate of technological change is determined outside the working of the market system. C) states that the rate of technological change is unaffected by economic incentives. D) does not adequately explain the factors that determine productivity.
Refer to the above figure. Use the DD-AA model to examine and compare the response of an economy under fixed and floating exchange rate to a permanent fall in foreign demand for its exports
What will be an ideal response?
Which of the following would be illegal under the Robinson-Patman Act? a. Ford and General Motors meet to fix the price of cars. b. Computer makers form a cartel. c. General Mills and Kelloggs decide to merge. d. Exxon sells gas at a higher wholesale price to independent gas retailers than to Exxon retailers
e. Exxon Oil and Mobil Oil elect the same person to their boards of directors.
The figure below shows the market for MP3 players in a small country. Dd and Sd are the domestic demand and domestic supply curves of the MP3 players. QQ is the quota quantity. The quota on MP3 players will cause domestic producers to
A. gain $150 million. B. gain $110 million. C. lose $120 million. D. lose $100 million.