when a worker takes on additional employment but is moved into a higher tax bracket and pays a higher tax rate
What will be an ideal response?
bracket creep
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Refer to Figure 23-3. Suppose that investment spending increases by $10 million, shifting up the aggregate expenditure line and GDP increases from GDP1 to GDP2. If the MPC is 0.9, then what is the change in GDP?
A) $9 million B) $10 million C) $90 million D) $100 million
Movements of ________ interest rates indicate that, contrary to the early Keynesians' beliefs, monetary policy was ________ during the Great Depression
A) nominal; tight B) nominal; easy C) real; tight D) real; easy
The Taiwanese government allows tax credits for domestic producers who compete with manufacturers in First World nations. This suggests that Taiwan engages in _____
a. trade protectionism b. export substitution c. foreign exchange market intervention d. import substitution e. voluntary export restrictions
In game theory, actions such as cheating that focus solely on short-run gains are referred to as
A. predatory behavior. B. opportunistic behavior. C. tit-for-tat strategic behavior. D. territorial behavior.