In the traditional Keynesian model, if the government cuts taxes, then
A) both consumption and real Gross Domestic Product (GDP) will increase.
B) both consumption and real Gross Domestic Product (GDP) will decrease.
C) consumption will increase but Gross Domestic Product (GDP) will decrease.
D) consumption will decrease but Gross Domestic Product (GDP) will increase.
A
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The market structure of monopoly exists when
A) there are a small number of interdependent firms that constitute the entire market. B) there is a single producer of a product. C) there are many producers of differentiated products. D) there are many producers of a homogeneous product.
The incentive to work is an ingredient of the negative income tax because:
a. if families do work, they will be eliminated from the program. b. if families don't work, they will be eliminated from the program. c. the more income earned in the workplace, the higher the family's after-tax income. d. the more income earned in the workplace, the higher the payment from the government. e. the amount earned in the workplace is not subject to income taxes.
The idea that a persons productive efforts and his or her economic rewards are unrelated:
A. is the neocolonialism view of economic development. B. describes the vicious circle of poverty. C. is the surplus labor theory of economic development. D. is the capricious universe view.
The amount of the external marginal cost per ton illustrated in the above figure is
A) $8.00 per ton. B) $12.00 per ton. C) $16.00 per ton. D) zero because no external cost is illustrated.