Question

D Question 5 1 pts A politician proposes to increase the income tax on top earners. He claims this will increase private sector economic output. This clairm O does not make sense: income tax does not affect economic nutput. O makes sense; more taxes will increase government spending and help the economy. O might make sense: if the tax policy is structured correctly, it can incentivize economic activity. O makes sense; more taxes on top earners will improve productivity of lower earners. O does not make sense. Income and output are interconnected. Taxing one is effectively a tax on the other Question 12 1 pts The table identifies annual gross domestic product (GDP) (in billions of dollars) for country Year GDP Year GDP 2006 1,107 2011 2,614 2007 1,397 2012 2,460 2008 1,695 2013 2,465 2009 1,667 2014 2,417 2010 2,208 2015 1,774 Based on the table, during which years(s) was country X most likely to have been in a recession? 2009,2012,2013, 2014, and 2015 0 2012 through 2015 O 2009 2014 and 2015 2009,2012,2014, and 2015 D Question 14 Input prices arein the short run and in the long run. O sticky; flexible O increasing; increasing flexible; flexible O sticky; sticky flexible:; sticky D Question 18 An increase in expected future prices causes menu costs a supply shock. O an increase in short-run aggregate supply. O a decrease in short-run aggregate supply. an upward movement along the aggregate supply curve. Previous

Answer 1

5. this might make sense. if the tax policy is structured correctly it can incentivize economic activity.

12. 2014 and 2015. a country is said to be in a recession when there is negative growth in the country's GDP for two years continuously

14. Input prices are sticky in the short run and flexible in the long run. In the long run output supply has no relation with the level of prices and cost whereas in the short run there is a relation between prices and costs.

18. an increase in expected future prices causes a decrease in short-run aggregate supply. this is because of the suppliers in expectation of a future increase in price tend to decrease the flow of goods into the market by holding the goods in order to sell them when the prices rise to make more profits.