The experience of the 1930s indicates that substantial tax increases during a severe recession will result in

What will be an ideal response?


a reduction in output and employment.

Economics

You might also like to view...

Education is an integral part of economic growth

Indicate whether the statement is true or false

Economics

An increase in subway fares in New York City will boost your expenditures on subway rides if

A) the supply of subway rides is elastic. B) the supply of subway rides is inelastic. C) your demand for subway rides is elastic. D) your demand for subway rides is inelastic.

Economics

Unemployment related to job search is known as ________

A) cyclical unemployment B) frictional unemployment C) structural unemployment D) tertiary unemployment

Economics

How much the quantity of a good traded changes after a shift of the supply curve depends on

a. the size of the shift. b. the slope of the demand curve. c. whether the market is subject to price controls. d. All of the above are correct.

Economics