Assume an economy has automatic stabilizers in place that include a progressive tax structure and a transfer payment system. Then in a period of high economic growth and high inflation, we would expect:
a. tax revenues to fall and unemployment compensation to rise.
b. average tax rates and welfare payments to decline.
c. the national debt to become larger.
d. average tax rates and government revenues to rise.
e. government spending on social security benefits to rise.
d
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Profit is the factor price for ________
A) capital B) land C) entrepreneurship D) labor
What are derivatives and derivative markets? Explain with an example
If labor supply of unskilled workers is perfectly inelastic, then
A. the labor supply curve of unskilled workers is vertical at the total number of unskilled workers in the market. B. firms face an increasing marginal cost of hiring unskilled labor. C. firms face a horizontal value of marginal product of employment curve. D. workers will supply more hours of labor to the market when wages increase. E. the labor supply curve of unskilled workers is horizontal at the market-clearing wage.
Suppose that TC = $550, TVC = $500, and MC = $100. If the firm produces 10 units of output, then:
A. AVC > MC B. AFC = AVC C. MC > AVC D. AVC = MC