In the traditional Keynesian model, an income tax cut raises real GDP because
A) consumption spending depends positively on after-tax income.
B) of the crowding-out effects of taxes.
C) consumption spending depends negatively on after-tax income.
D) consumption spending is not related to after-tax income.
A
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A decrease in the price of pizza will lead to a(n):
A. decrease in the quantity of pizza demanded. B. decrease in the number of consumers. C. increase in the quantity of pizza demanded. D. increase in the demand for pizza.
Increasing the income tax rate ________ the before-tax real wage rate and ________ the after-tax real wage rate
A) lowers; raises B) raises; raises C) does not change; raises D) raises; lowers E) lowers; lowers
It has been argued that the laws that prohibited branch banking were needed to protect consumers from large monopoly banks. Does that argument hold up to close scrutiny? Explain.
What will be an ideal response?
A movement along the supply curve might be cause by a change in
a) production technology b) input prices c) expectations about future prices d) the price of the good or service that is being supplied