Cutting income tax rates will most likely cause
A: a large shift in the AD-curve but a small shift in the AS-curve
B: a small shift in the AD-curve but a large shift in the AS-curve
C: a large increase in output resulting in a large increase in tax revenues
D: a budget deficit so large that income growth is no longer possible
E: both B) and C)
A: a large shift in the AD-curve but a small shift in the AS-curve
B: a small shift in the AD-curve but a large shift in the AS-curve
C: a large increase in output resulting in a large increase in tax revenues
D: a budget deficit so large that income growth is no longer possible
E: both B) and C)
举一反三
- A large decrease in the income tax rate will most likely cause A: a fairly large increase in aggregate demand B: a fairly small increase in aggregate supply C: an increase in the price level D: all of the above E: none of the above
- An increase in expected inflation causes the supply of bonds to _________ and the supply curve to shift to the _________.
- The discovery of a large new reserve of crude oil will shift the ________ curve for gasoline, leading to a ________ equilibrium price. ( ) A: supply, higher B: supply, lower C: demand, higher D: demand, lower
- The optimum tariff is most likely to apply to ( ). A: small tariff imposed by large country B: small tariff imposed by small country C: large tariff imposed by large country D: large tariff imposed by small country
- The idea behind the Laffer curve is that increases in tax rates do not increase tax revenues proportionately because they decrease the: A: demand for labor. B: supply of labor. C: productivity of labor.