In the long-run ISLM model and with everything else held constant, the long-run effect of a tax cut is to ________ real output and ________ the interest rate

A) increase; increase
B) increase; not change
C) not change; increase
D) not change; decrease


C

Economics

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Which of the following statements is (are) correct? The Mundell-Fleming model is

a. a new closed-economy model. b. implicitly assumes a fixed domestic price level. c. is an open-economy version of the IS-LM model. d. Both b and c

Economics

Since collective consumption goods have a marginal cost of zero, the efficient price is equal to _____

a. average fixed cost b. average variable cost c. marginal cost d. the market price

Economics

Why are math and graphics used in economic models?

Economics

Sugar price supports ensure an abundance of sugar, and hence reasonable prices for consumers

a. True b. False Indicate whether the statement is true or false

Economics