Government taxes are an example of a policy lever.
Answer the following statement true (T) or false (F)
True
Fiscal policy is the use of government taxes, transfer payments, and purchases to alter macroeconomic outcomes.
You might also like to view...
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
On the Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,500, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?
What will be an ideal response?
When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions, one must conclude that North South trade, such as U.S.-Mexico trade
A) must help low skill workers on both sides of the border. B) is likely to hurt high-skilled workers in the U.S. C) is likely to hurt low-skilled workers in the U.S. D) is likely to hurt low-skilled workers in Mexico. E) is likely to help highly skilled workers in Mexico.
What are the benefits of capital mobility?
What will be an ideal response?