Equivalent variation is a method employed to measure excess burden. Comment on why a method such as compensating variation would not be appropriate for this analysis.
What will be an ideal response?
Compensation variation measures the change in income that would be required to return a
person to his original utility curve after a commodity tax/subsidy had moved him from it.
Equivalent variation measures the amount of income change that would be necessary to move
a person to the same level of utility that a commodity tax/subsidy moved him to.
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Which of the following would increase aggregate demand?
What will be an ideal response?
Which of the following statements is FALSE?
A. The federal budget deficit in 2020 was about 4 percent of the GDP. B. The public debt of $10 billion is the accumulated debt of all U.S. individuals, firms, and institutions. C. A budget deficit of $10 billion in a given year increases the public debt by $10 billion. D. During the past five years, the U.S. public debt has been increasing.
What is the interaction between the Federal Reserve districts and the Board of Governors of the Federal Reserve System?
What will be an ideal response?
Refer to Table 8-11. Nominal GDP for Tyrovia in 2016 equals
A) $1,140. B) $880. C) $690. D) $560.