If the government raises income taxes, then the equilibrium amount of employment ________ and potential GDP ________
A) increases; decreases
B) does not change; does not change
C) increases; increases
D) decreases; increases
E) decreases; decreases
E
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According to the table, the price of Big Macs converted to U.S. dollars varies widely around the world. This shows that Big Macs do NOT follow the
A) law of opportunity cost. B) law of one price. C) law of demand. D) law of exchange rate parity.
A monopoly is a sole ___________, and a monopsonist is a sole ___________
a. buyer in a goods market; seller in a goods market b. seller in a goods market; seller in a labor market c. buyer in a goods market; seller in a labor market d. seller in a goods market; buyer in a labor market e. seller in a labor market; buyer in a goods market
The 1996 Farm Act did all of the following except
A. Eliminate many restrictions on acreage set-asides. B. Increase government regulation of farming. C. Refocus farm policy toward stabilizing farm incomes rather than prices. D. Eliminate target prices and deficiency payments.
In the dynamic aggregate demand and aggregate supply model, what is the result of aggregate demand increasing slower than potential real GDP?
What will be an ideal response?