Increase in business taxes will ________ the expenditure curve:
A) decrease.
B) increase.
C) not change.
D) none of the above.
Answer: A) decrease.
You might also like to view...
When there is an inflationary gap: a. Real output exceeds the natural level of real output. b. Real output equals the natural level of real output
c. Real output is less than the natural level of real output. d. Any of the above is possible.
One advantage of a money system compared to a barter system is that
a. barter never works. b. money creates the need for banks. c. money is more efficient. d. everyone has money.
Which of the following is a problem when comparing GDPs per capita between nations?
a. Fluctuations in exchange rates affect differences in GDP per capita. b. GDP per capita fails to measure income distribution. c. All of the answers are correct. d. GDP per capita is subject to greater measurement errors for LDCs compared to IACs.
Which of the following is not a basic decision that all nations must confront?
A. How should we produce goods and services? B. What goods and services should we produce? C. For whom should goods and services be produced? D. Should we have economic growth?