What are the two important programs in practice in America that strongly resemble a negative income tax?
1 . Food Stamps program: Food Stamp benefits decline as earnings rise, and Food Stamps are used like cash in many poor neighborhoods.
2 . Earned Income Tax Credit (EITC): As earnings rise from zero to some threshold, the federal government supplements the earnings of the working poor by giving them what amounts to a grant that is proportional to their earnings. But once earnings pass a second threshold, the government starts taking this grant back, just as a NIT would.
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Voluntarism in recycling garbage
a. generally has not been successful. b. works only where there is surveillance. c. increases the cost of recycling waste. d. has worked best of all recycling program alternatives.
Increases in productivity are caused by
A. better education and training of the labor force. B. higher levels of literacy. C. improvements in technology. D. All of these responses are correct.
Country A-2020 Transactions (billions of dollars)
In the above table, the trade balance on goods and services for Country A is ________ billion dollars.
A. -25 B. -100 C. +25 D. +100