Assume perfect capital mobility. Under a fixed exchange rate system, expansionary fiscal policy causes income to _____, while under flexible exchange rates expansionary fiscal policy causes income to _____
a. increase; increase
b. increase; remain unchanged
c. increase; decrease
d. remain unchanged; increase
B
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Transfer payments are important for society because
a. the government needs to perform acts of goodwill to maintain citizens' support b. we could not count GDP without them c. they serve to redistribute money from one group of citizens to another d. government investment is an important component of GDP e. they result in lower taxes for citizens
The change in total revenue associated with one additional unit of input is referred to as
A. MPP. B. Cost efficiency. C. MRP. D. Elasticity of labor supply.
According to supply-side theory, which of the following will shift the aggregate supply curve to the right?
A. A reduction in discrimination. B. A higher minimum wage. C. A reduction in spending on education. D. Higher marginal tax rates.
Refer to the below graph. How much is the total amount of tax revenue going to the government?
The graphs below illustrate the market for a product on which an excise tax has been imposed by government.
A. $77
B. $80
C. $42
D. $56