The amount of time it takes the government to determine the size of a tax policy is known as the
A. effect time lag.
B. recognition time lag.
C. Ricardian-equivalence time lag.
D. action time lag.
Answer: D
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The ________ are hurt by importing a good
A) domestic consumers of the good B) domestic producers of the good C) domestic governments D) foreign producers of the good E) foreign governments
Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at $200 . Susan is willing to dog sit for Rebecca so long as she receives at least $150 . Rebecca and Susan agree on a price of $175 . Suppose the government imposes a tax of $10 on dog sitting. The tax has made Rebecca and Susan worse off by a total of
a. $50. b. $40. c. $20. d. $10.
When actual output equals potential output there is ________ output gap and the rate of inflation will tend to ________.
A. an expansionary; decrease B. an expansionary; increase C. no; remain the same D. a recessionary; increase
Suppose that in 2015, the chain-weighted price index for GDP in Estonia is 220, and the chain-weighted price index in Lithuania is 160. In 2016, the price index in Estonia is 242, and the price index in Lithuania is 180. You could conclude that:
A. Estonia is a more expensive place to live than Lithuania. B. Lithuania is a more expensive place to live than Estonia. C. Estonia's rate of inflation is higher than Lithuania's. D. Lithuania's rate of inflation is higher than Estonia's.