One timing problem with fiscal policy to counter a recession is an "administrative lag" that occurs between the:
A. start of the recession and the time it takes to recognize that the recession has started.
B. time the need for the fiscal action is recognized and the time that the action is taken.
C. end of the recession and the time it takes to recognize that the recession has ended.
D. time fiscal action is taken and the time that the action has its effect on the economy.
Answer: B
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In 2012, "Tax-Freedom Day" (the day average workers have earned enough to pay their tax bills) was:
A. April 9. B. April 15. C. April 17. D. July 4.
Agri-Tech supplies is a patented sweetener to various food processors. It has noticed that the value of the sweetener varies dramatically from one buyer to another, depending on the end-use demand. But its experiments with charging higher prices to some buyers have failed. The demand for the juices is highly price elastic while the demand for sweetened medicine is relatively less elastic. Can Agri-Tech find a way to successfully price discriminate?
What will be an ideal response?
Compare the effect on the price level and real GDP of a decrease in tax rates assuming a supply-side effect versus no supply-side effect
Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________. A) more; less B) less; less C) more; more D) less; more
The trench warfare case during World War I is an example of a(n)
A) tit-for-tat strategy. B) explicit agreement. C) non-cooperative Nash equilibrium. D) None of the above.