In the U.S. economy, the effect on federal tax revenues and spending of a decrease in employment is to:
a. cut tax revenues and raise expenditures.
b. cut spending and raise tax revenues.
c. raise both tax revenues and expenditures.
d. cut both spending and tax revenues.
a
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The "real" price of a good is known as
A. relative price of the good. B. the dollar price of the good since we use dollars in the United States. C. the absolute price of the good. D. the price actually paid for a good instead of the sticker price.
Which of the following is not a supply factor in economic growth?
A. The stock of capital. B. Technological advance. C. The size and quality of the labor force. D. Aggregate expenditures of households, businesses, and government.
Answer the following statements true (T) or false (F)
1. An example of the special interest effect is a farm program from which a large group receives small benefits at the expense of a smaller group who individually suffer large losses. 2. The Freedom to Farm Act of 1996 aimed to eliminate agricultural price supports and acreage allotments for many crops. 3. The movement to eliminate agricultural subsidies in the U.S. and make farmers rely more on market forces, starting with the Farm Act of 1996, continues to this day. 4. The Food, Conservation, and Energy Act of 2008 provides farm subsidies in the form of direct payments, countercyclical payments and marketing loans to farmers.
An increase in the dollar price of the British pounds will:
A. Increase the pound price of dollars B. Decrease the pound price of dollars C. Leave the pound price of dollars unchanged D. Cause Britain's terms of trade with the United States to deteriorate