Economists dismiss the idea that lower tax rates can lead to higher tax revenue, because there is a consensus that the relevant elasticities of demand and supply are very low
a. True
b. False
Indicate whether the statement is true or false
False
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Point C on the production possibilities frontier in the above diagram illustrates
A) a point that achieves production efficiency. B) a combination of goods and services that cannot be produced efficiently C) all goods and services that are desired but cannot be produced due to scarce resources. D) a production point that has underutilization of resources
What is Supplemental Security Income?
What will be an ideal response?
A . Explain how public debt can crowd out private investment. b. Even if the crowding out effect does occur, explain the argument that crowding out does not necessarily undermine overall economic growth
Assume that the full-employment level of output is $1,000 and the price level associated with full-employment output is 100. Also assume that the economy's current level of output is $1,100 and at the price level of 100 current aggregate demand is $1,200. If the government wants to move the economy back to the full-employment level of output and the MPC is 0.8, then it should increase taxes by
A. $100. B. $25. C. $50. D. $200.