17. D (as at point d, a fall in tax will lead to an increase in tax revenue)
1. Cyclically balanced budget
2. Subsidies to private airports (this will help mitigate the problem of crowding out due to private investment)
11. Information lag (this occurs because information on relevant data is not easily available)
bone Chapter 10 Part 2: Homework Problems 17. (Figure: Laffer Curve 3) A supply side economist...
Done Chapter 8 Part 2: Homework Problems 6. Firms decide how much to invest by comparing the rate of return on their projects with: the productivity of the workers assigned to the projects. the before-tax rate of return. the interest rate. their total profit. Done Chapter 8 Part 2: Homework Problems 10. If the marginal propensity to consume (MPC) rises, the multiplier: rises or falls, depending on the size of the increase in the MPC. stays the same. also rises....
Chapter 9 Part 2: Homework Problems Done 9. (Figure: Determining SRAS Shifts 2) Aggregate Output (Q) Which of the following might cause a change in short-run aggregate supply? Unions successfully negotiate higher wages. Consumer incomes decrease. Businesses are increasingly optimistic about the future. Taxes on businesses increase. Start: 4:2S PM Aggregate Price Level (P) Done Chapter 9 Part 2: Homework Problems 11. (Figure: Shifting SRAS and AD) 200 180 SRAS 160 140 120 AD2 100 80 a 6์- AD 40์-...
Match the following: 2. Adam Smith 3. Karl Marx 4. John Maynard Keynes Choices: (2 are not used.) a. invented capitalism b. invented socialism c. founder of modern macroeconomics d. founder of modern market economics e. predicted the end of capitalism 5. If a firm has trouble selling its good, it can a. lower price. b. increase demand. c. decrease supply. d. both a) and b) are correct. 6. People often pay too much for goods because they are not...
Match the following: Adam Smith David Ricardo John Maynard Keynes Choices: (2 are not used.) a. founder of modern market economics comparative advantage-argument for mutual benefits of international trade comparative advantage-emphasized job displacements of international trade founder of modern macroeconomics invented capitalism duo If a firm has trouble selling its good, it can lower price. increase demand. decrease supply. both a) and b) are correct. 6. People often pay too much for goods because they are not aware of which...
1. When it comes to financial matters, the views of Aristotle can be stated as: a. usury is nature’s way of helping each other. b. the fact that money is barren makes it the ideal medium of exchange. c. charging interest is immoral because money is not productive. d. when you lend money, it grows more money. e. interest is too high if it can’t be paid back. 2. Since 2008, when the monetary base was about $800 billion,...