Balancing the government’s budget each year would
a) allow tax rates to remain constant from year to year
b) reduce uncertainty over future tax rates and net income
c) exacerbate recessions
d) stabilize short run GDP
e) generate smaller economic distortions than a policy of countercyclical deficits and surpluses
c) exacerbate recessions
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Refer to Figure 2-18. Which two arrows in the diagram depict the following transaction: Carter earns a $400 commission for selling men's designer shoes at Brooks Brothers
A) J and M B) J and G C) K and G D) K and M
Earnings usually reflect a person's productivity. What are factors that cause differences in productivity across people so that earnings differ too?
What will be an ideal response?
During the 1970s, the inflation rate and the unemployment rate were inversely related
a. True b. False Indicate whether the statement is true or false
Phil and Kelly have always wanted to take a cruise. Although willing to pay $5,000 for a Caribbean cruise for two, they were able to purchase a cruise vacation for two for $3,500 . Their total consumer surplus amounted to:
a. $750 b. $5,000. c. $1,500. d. $3,500.