If the unemployment rate rises, which policies would both be appropriate to reduce it?
a. increase taxes, increase government spending
b. increase taxes, decrease government spending
c. decrease taxes, increase government spending
d. decrease taxes, decrease government spending
c
You might also like to view...
Using the information in situation 20-2, if government increases their spending by $50 and increases net taxes by 50, then equilibrium aggregate output will change by
A) -$100. B) -$50. C) $50. D) $100.
Autonomous consumption is defined as:
a. the level of consumption that depends only on the exchange rate. b. the consumption expenditures incurred by the government. c. the level of consumption that does not depend on income. d. an equilibrium condition that needs to be met for the aggregate expenditure model to work. e. the part of consumption that is related to investment.
In the following graph, the price of capital is $12 per unit. If the price of labor increases to $40 per unit and total cost is unchanged, what is the maximum amount of output the firm can produce?
A. 300 units of output B. 400 units of output C. 200 units of output D. 100 units of output E. none of the above
What is the natural resource problem in DVC?
What will be an ideal response?