Recall the Application the Joint Committee on Taxation and how Congress accounts for the dynamic effects of its policies to answer the following questions.The results highlighted in this Application shows that President Trump's tax cuts resulted in:
A. a decrease in tax revenue.
B. an increase in tax revenue.
C. no change in tax revenue.
D. an increase in tax revenues early on, before tax revenues decreased in the long run.
Answer: A
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To understand how the price of a good is determined in a free market, one must account for the interests of:
A. neither buyers nor sellers. B. only sellers. C. buyers and sellers. D. only buyers.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
When accounting profits are zero, which of the following is most likely to be true?
A. Economic profits are negative. B. Economic profits could be positive. C. Economic profits could be zero. D. All of these are likely.
What are “four-firm” concentration ratios? How do economists use them to define monopolistically competitive industries and oligopolistic industries?
What will be an ideal response?