Alan Greenspan, former Chairman of the Federal Reserve, discussed the advantages of which kind of tax system, "particularly if one were designing a tax system from scratch"?
a. a progressive tax system
b. a regressive tax system
c. a consumption tax
d. a lump-sum tax
c
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Explain the logic of the multiplier effect
What will be an ideal response?
If the government reduces expenditure on goods and services by $30 billion, then aggregate demand
A) increases by $30 billion and real GDP increases. B) decreases by more than $30 billion and real GDP decreases. C) increases by more than $30 billion and real GDP increases. D) decreases by $30 billion and real GDP decreases. E) increases and potential GDP increases.
Suppose that at prices of $5, $4, $3, $2, and $1 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the quantities supplied of Z to, say, 6, 8, 10, 12, and 14 units at these prices?
A. improved technology for producing Z B. increases in the incomes of the buyers of Z C. an increase in the excise tax on product Z D. an increase in the prices of the resources used to make Z
Recall the Application about the manufacture of fake killer whales used to scare sea lions off the Washington coast to answer the following question(s).Recall the Application. The mold used to produce the fake killer whales is an indivisible input.
Answer the following statement true (T) or false (F)