The supply-side effects of an income tax cut ________ potential GDP and ________ aggregate supply
A) increases; do not change
B) increase; increase
C) decrease; increase
D) decrease; decrease
E) increase; decrease
B
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In the above figure, B is the current long-run aggregate supply curve and E is the current short-run aggregate supply curve
If there is an increase in the full-employment quantity of labor, then the long-run aggregate supply curve and the short-run aggregate supply curve A) remain B and E. B) shift to A and D, respectively. C) shift to C and F, respectively. D) remain at B and shift at F, respectively.
Which of the following is the best example of "how goods and services should be produced?"
A) complying with the technical specifications in the production of an aircraft B) the production of jet aircraft for the air force or for a commercial airline C) the use of additional workers versus the use of machines in the production of goods D) the production of a new manufacturing facility
Answer the following statement(s) true (T) or false (F)
1. Most studies suggest the economic effects of climate change on the U.S. economy will be relatively small. 2. The U.S. federal government has enacted a nationwide carbon tax to reduce carbon dioxide emissions. 3. According to the U.S. Supreme Court, greenhouse gases are a pollutant, as defined by the Clean Air Act. 4. In the EU-ETS allowance market, the price of an allowance can be affected by the state of the economy. 5. Renewable energy certificates are market instruments that represent the displacement of power generated by fossil fuels, an outcome that helps to reduce GHG emissions.
Who gains and who loses from a protective tariff? Explain.
What will be an ideal response?