The Congressional Budget Office estimates the size of the tax multiplier to be ________ for a 2-year tax cut for lower- and middle-income people
A) 0.1 - 0.6
B) 0.3 - 1.5
C) 0.5 - 2.5
D) 2.0 - 3.0
Answer: B
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If each firm’s production is associated with the release of 50 units of effluent, how much will each pay in total effluent fees when facing the $90 marginal effluent fee?
Among the identified point sources contributing to the pollution of Puget Sound are Dow Chemical (D) and Chevron (C). Each firm's cost functions are shown below. MACD = 2.5AD MACC = 3.75AC TACD = 1.25AD2 TACC = 1.875AC2 To meet the effluent limits under the Clean Water Act, each firm has an NPDES permit to release some fixed amount of effluents, so each must abate 30 units.
The rational expectations theory indicates that expansionary policy will:
A. stimulate real output in the long run but not in the short run. B. expand real output and employment if the public quickly anticipates the effects of the expansionary policy. C. equalize real and nominal interest rates during lengthy periods of inflation. D. fail to increase employment because individuals will anticipate it and take actions that will offset its impact.
A shortage means that people
What will be an ideal response?
Which of the following models do not believe that there exists a short run tradeoff between higher inflation and lower unemployment?
a. Keynesians b. monetarists c. new classical d. real business cycle e. none of the above