Government expenditure ________ change potential GDP and taxes ________ change potential GDP
A) can; can
B) cannot; can
C) can; cannot
D) cannot; cannot
E) None of the above answers is correct.
A
You might also like to view...
The price system always works instantaneously
Indicate whether the statement is true or false
A proportional income tax is defined as a tax for which
A) total taxes paid increase with the level of income. B) total taxes paid are independent of the level of income. C) the average tax rate increases with the level of income. D) the average tax rate is the same at all levels of income.
A tax on an imported good is called:
a. an export. b. dumping. c. a quota. d. a tariff. e. free trade.
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one shirt?
A. 4 computers B. ¼ computer C. ½ computer D. 2 computers