Ch 5 MCQs File
... A) decrease government spending, reduce consumption, increase the tax rate. B) increase government spending, decrease real income, reduce the tax rate. C) decrease government spending, increase real income, reduce the tax rate. D) decrease government spending, increase real income, increase the tax ...
... A) decrease government spending, reduce consumption, increase the tax rate. B) increase government spending, decrease real income, reduce the tax rate. C) decrease government spending, increase real income, reduce the tax rate. D) decrease government spending, increase real income, increase the tax ...
Chapter 11
... Supply-side economists think that a tax cut increases aggregate supply by a large amount so that GDP increases and the price level does not change (or might even fall). ...
... Supply-side economists think that a tax cut increases aggregate supply by a large amount so that GDP increases and the price level does not change (or might even fall). ...
Chapter 20-21 review File
... Representative McNeal faced a difficult decision. The economy was experiencing moderate inflation, and this year the government was continuing its budget deficit, which would further increase the national debt. Yet, there was a spending bill before the House of Representatives to reduce the unemploy ...
... Representative McNeal faced a difficult decision. The economy was experiencing moderate inflation, and this year the government was continuing its budget deficit, which would further increase the national debt. Yet, there was a spending bill before the House of Representatives to reduce the unemploy ...
Exam - Pearson Canada
... used to increase the money supply. There is no need to describe the money multiplier process or to explain how changing the money supply can affect the economy more generally. 2. Use aggregate demand and short run aggregate supply curves to illustrate why it is sometimes thought that in choosing its ...
... used to increase the money supply. There is no need to describe the money multiplier process or to explain how changing the money supply can affect the economy more generally. 2. Use aggregate demand and short run aggregate supply curves to illustrate why it is sometimes thought that in choosing its ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... difference in returns arises from limited participation in equity markets, since in this case prefunding would provide less well-off people an opportunity to earn much more on their contributions than they have been able to in the past. Another important, and related, issue pertinent to Feldstein an ...
... difference in returns arises from limited participation in equity markets, since in this case prefunding would provide less well-off people an opportunity to earn much more on their contributions than they have been able to in the past. Another important, and related, issue pertinent to Feldstein an ...
ECONOMIC GROWTH Economic growth occurs when there is an
... Transfer payments – these are not included in GDP because they are nonproductive. As a result, a country may not appear to be as well off as it actually is. Sale of existing assets – these are excluded. If you sell a second hand car privately, it is not included in GDP, whereas if a used car salesma ...
... Transfer payments – these are not included in GDP because they are nonproductive. As a result, a country may not appear to be as well off as it actually is. Sale of existing assets – these are excluded. If you sell a second hand car privately, it is not included in GDP, whereas if a used car salesma ...
The relative merits of demand-side and supply
... Why work harder if the government will keep most of your earnings? The governments of the 80s reduced these high marginal income tax rates to encourage more people to work hard. The final big drop was in the Budget of 1988, when the top marginal rate fell from 60% to 40% where it remains today. Of c ...
... Why work harder if the government will keep most of your earnings? The governments of the 80s reduced these high marginal income tax rates to encourage more people to work hard. The final big drop was in the Budget of 1988, when the top marginal rate fell from 60% to 40% where it remains today. Of c ...
ECON 2133 Assessment Exam
... A) discretionary presidential effectors. B) necessary for fiscal policy to work. C) time lag factors. D) destabilizers. E) automatic stabilizers. 7. When you buy a hamburger for lunch, you are using money as a(n) A) medium of exchange. B) deferred payment instrument. C) income compensation. D) store ...
... A) discretionary presidential effectors. B) necessary for fiscal policy to work. C) time lag factors. D) destabilizers. E) automatic stabilizers. 7. When you buy a hamburger for lunch, you are using money as a(n) A) medium of exchange. B) deferred payment instrument. C) income compensation. D) store ...
CHAPTER 15: TEST BANK
... a. anything that increases aggregate demand. b. anything that increases costs of production. c. market power that increases profits. d. anything that pulls down aggregate demand. 9. Which of the following is a tool of expansionary fiscal policy? a. increased taxes b. reduced transfers c. reduced reg ...
... a. anything that increases aggregate demand. b. anything that increases costs of production. c. market power that increases profits. d. anything that pulls down aggregate demand. 9. Which of the following is a tool of expansionary fiscal policy? a. increased taxes b. reduced transfers c. reduced reg ...
Unit 2 Review Q`s PP - South Hills High School
... domestic product (GDP), they mean: a) All final goods and services produced in an economy in a year b) All intermediate and final goods and services produced in an economy in a year c) All final goods and services produced in an economy in a five-year time period d) All final goods and services prod ...
... domestic product (GDP), they mean: a) All final goods and services produced in an economy in a year b) All intermediate and final goods and services produced in an economy in a year c) All final goods and services produced in an economy in a five-year time period d) All final goods and services prod ...
Representation and Economic Policy Ground Rules
... an increase in primary public spending (before interest) of 3% of GDP compared with the year 2000 (rising from 41% of GDP to 44%), which has not been funded by a parallel increase in the tax burden. If the aim is not to increase taxation -- indeed if many people wish to bring it down -- then it is n ...
... an increase in primary public spending (before interest) of 3% of GDP compared with the year 2000 (rising from 41% of GDP to 44%), which has not been funded by a parallel increase in the tax burden. If the aim is not to increase taxation -- indeed if many people wish to bring it down -- then it is n ...
Part 2 - Queen`s Economics Department
... aggregate expenditures in column 3 have to change at each level of GDP to eliminate the inflationary or recessionary gap? Explain. b. Will there be an inflationary or recessionary gap if the full-employment level of output is $500 billion? Explain the consequences. By how much would aggregate expend ...
... aggregate expenditures in column 3 have to change at each level of GDP to eliminate the inflationary or recessionary gap? Explain. b. Will there be an inflationary or recessionary gap if the full-employment level of output is $500 billion? Explain the consequences. By how much would aggregate expend ...
Criteria for Pension Reform in Thailand
... • Important to choose system that encourages continued work--rationale for DC plan ...
... • Important to choose system that encourages continued work--rationale for DC plan ...
24_A2-Economic
... Your task Define & who’s in charge? Expansionary policy includes Benefits of policy Limitations of policy ...
... Your task Define & who’s in charge? Expansionary policy includes Benefits of policy Limitations of policy ...
Thought for the Week (229): The Fiscal Cliff
... parties: Republican, Democratic and the Economy! In the meantime, we continue to hold high levels of cash and position our portfolios to weather a politically-inspired correction. When the opportunity to pick up discounted, quality investments presents itself, we will be ready with cash to invest. T ...
... parties: Republican, Democratic and the Economy! In the meantime, we continue to hold high levels of cash and position our portfolios to weather a politically-inspired correction. When the opportunity to pick up discounted, quality investments presents itself, we will be ready with cash to invest. T ...
Intermediate Macroeconomics，Assignment 5
... b. Since California has a fixed exchange-rate regime, it should use fiscal policy to stimulate employment. As a matter of fact, it cannot use monetary policy along at all as it has to maintain a fixed exchange rate. c. Imposing import restriction essentially shifts the net export schedule to the rig ...
... b. Since California has a fixed exchange-rate regime, it should use fiscal policy to stimulate employment. As a matter of fact, it cannot use monetary policy along at all as it has to maintain a fixed exchange rate. c. Imposing import restriction essentially shifts the net export schedule to the rig ...
happy unicorns
... •Administration controls fiscal •Reserve Bank controls monetary •Halt until definitely separated ...
... •Administration controls fiscal •Reserve Bank controls monetary •Halt until definitely separated ...
Chapter 20 Introduction to macroeconomics
... but uses the same style of thinking about economic issues as in microeconomics. ...
... but uses the same style of thinking about economic issues as in microeconomics. ...
Final Examination: Trimester II, 2014
... 11. Consider three consumer goods: 100 of Good A, 100 of Good B, and 100 of Good C. In the base year, Good A sold at a price of $1, Good B sold at a price of $1, and Good C sold at a price of $1. In the current year, Good A sold at a price of $3, Good B sold at a price of $5, and Good C sold at a pr ...
... 11. Consider three consumer goods: 100 of Good A, 100 of Good B, and 100 of Good C. In the base year, Good A sold at a price of $1, Good B sold at a price of $1, and Good C sold at a price of $1. In the current year, Good A sold at a price of $3, Good B sold at a price of $5, and Good C sold at a pr ...
Course Student Name
... same amount of decrease in taxes. The government spending multiplier is greater than the taxation multiplier. As a result the effect of a change in government spending on inflation is greater than the effect of a tax change. What is the ratio of the usual spending multiplier to the usual tax multipl ...
... same amount of decrease in taxes. The government spending multiplier is greater than the taxation multiplier. As a result the effect of a change in government spending on inflation is greater than the effect of a tax change. What is the ratio of the usual spending multiplier to the usual tax multipl ...
Ch13B-7e
... The Multiplier and the Price Level Aggregate Expenditure and Aggregate Demand The aggregate expenditure curve is the relationship between aggregate planned expenditure and real GDP, with all other influences on aggregate planned expenditure remaining the same. The aggregate demand curve is the rela ...
... The Multiplier and the Price Level Aggregate Expenditure and Aggregate Demand The aggregate expenditure curve is the relationship between aggregate planned expenditure and real GDP, with all other influences on aggregate planned expenditure remaining the same. The aggregate demand curve is the rela ...
Economics Final Exam Study Guide Unit 1: Economic Decision
... 1. What is the opportunity cost of a decision? 2. What is scarcity? 3. Why does every decision involve trade-offs? 4. What is “thinking at the margin”? 5. What id physical capital? Give an example. 6. What is human capital? Give an example. 7. What is economic interdependence? How does a circular fl ...
... 1. What is the opportunity cost of a decision? 2. What is scarcity? 3. Why does every decision involve trade-offs? 4. What is “thinking at the margin”? 5. What id physical capital? Give an example. 6. What is human capital? Give an example. 7. What is economic interdependence? How does a circular fl ...
The Consumption Sector - Holy Family University
... Sticky Consumption • The consumption functions states – As income rises, consumption (C) rises, but not as quickly – Therefore, consumption varies with disposable income (DI) • DI increases . . . C increases but by a smaller amount • DI decreases . . . C decreases but by a smaller amount ...
... Sticky Consumption • The consumption functions states – As income rises, consumption (C) rises, but not as quickly – Therefore, consumption varies with disposable income (DI) • DI increases . . . C increases but by a smaller amount • DI decreases . . . C decreases but by a smaller amount ...