If income falls below its potential and the income tax rate is reduced, this will:
A. raise the cyclical deficit but reduce the structural deficit.
B. reduce the cyclical deficit but raise the structural deficit.
C. reduce both the cyclical and structural deficits.
D. raise both the cyclical and structural deficits.
Answer: D
You might also like to view...
The "metering" scheme refers to
a. Discriminating consumers through the amount of product bought b. Giving away core technology and making up for it through higher margins on secondary sales c. An indirect method of price discrimination d. All of the above
Which of the following is a correct statement about production possibilities frontiers?
a. An economy can produce only on the production possibilities frontier. b. An economy can produce at any point inside or outside a production possibilities frontier. c. An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier. d. An economy can produce at any point inside the production possibilities frontier, but not on or outside the frontier.
Output per unit of input measures
A. The inequality trap. B. The investment rate. C. Per capita GDP. D. Productivity.
?If each variable in a single cross-sectional equation is differenced over time, then it is called the:
A. ?unobserved effects model. B. ?first-differenced estimator. C. ?fixed effects model. D. ?first-differenced equation.