The tax cuts of 2008 and 2009 reduced the disposable income of U.S. consumers.  True or  False

Q: A decrease in the full-employment budget surplus will Multiple Choice a) consumption b) decrease…

A: The term full-employment budget surplus refers to the surplus that occurs when an economy reaches…

Q: United States, the various state governments almost all have laws that require them to balance their…

A: Expansionary fiscal policy is utilized to launch the economy during a recession. It supports total…

Q: If the quantity demanded (Qd) and quantity supplied (Qs) are given as Qd = 60 – 5P and Qs = 15P –…

A: The deficit of goods in the market is the situation where the price is lower than its equilibrium…

Q: Your Facebook feed shows a news article which says the Consumer Confidence Index has decreased.…

A: My Facebook feed shows a news article which says the Consumer Confidence Index has decreased. It's…

Q: The economy is at full employment, with fairly low levels of unemployment and inflation. What is…

A: Answer: A budget surplus occurs when the government revenue is more than the government expenditure.…

Q: How would an increase in income tax influence the aggregate demand and the aggregate supply in the…

A: Aggregate demand: Aggregate demand, or final domestic demand, is the total demand for final goods…

Q: Suppose a closed economy has an aggregate savings equal to 150 and intended investment equal to 400.…

A: Investment= public savings+ private savings. 400 = public savings+ 150 Public savings = 400-150=250

Q: 7) Spending on the war in Afghanistan is essentially categorized as government purchases. How do…

A: Aggregate demand is the total demand in an economy which consists of demand by household…

Q: Presidential candidate trump promised in mid 2016 that if he became President, he would never have…

A: A budget deficit occurs when expenses exceed revenue and indicate the financial health of a country.…

Q: A government will choose to increase spending: Multiple Choice a) to stimulate the economy. b) if…

A: When talking about government intervention it can be said that it refers to actions taken by a…

Q: Jhich of the following is incorrect? Multiple Choice As the U.S. price level rises, U.S. goods…

A: When the price level in the economy increases, real balance at the hands of the individuals fall.…

Q: Amid an economic recession, a government decides to implement an expansionary fiscal policy. This…

A: A recession is an economic downturn described by a critical and sustained decrease in economic…

Q: Brook has no job and no wealth. However, they know that they will inherit £50,000 in the future.…

A: Part (a): Sketch the Budget LineBrook will inherit £50,000 in the future (let's call this t=2). They…

Q: Share two Positive Affirmations statements. Positive affirmation statements are uplifting…

A: Detailed explanation:1. Positive Affirmation Statements: Affirmations are effective strategies for…

Q: During the pandemic of 2020, stimulus checks were sent to qualifying individuals. Some people chose…

A: Stimulus checks might be sent to individuals in order to induce them to spend more, and thus…

Q: 4) Suppose an economy is producing real GDP of $600 billion. Potential GDP is equal to $540 billion,…

A: Real GDP: Real GDP is the measure of an economy's output in terms of the value of goods and services…

Q: arold's MPC is .70. Harold has just received a birthday card with $100 inside. How much will Harold…

A: Marginal propensity to consume (MPC) measures the change in consumption due to change in income.…

Q: Pundits have stated that the recent tax cut mainly benefits companies. The benefit to companies can…

A: Lower tax rates increase the spending power of consumers and may increase aggregate demand,…

Q: TRUE/FALSE According to the Laffer curve, increases in tax rates always result in less tax revenue.

A: Laffer curve shows graphically the relationship between tax rate and tax revenue.

Q: Question 21.21  Which of the following goods (with their respective income-elasticity coefficients…

A: Income elasticity of demand is a measure of the degree of responsiveness of quantity demanded to…

Q: Suppose there is an increase in aggregate demand. If the fed want to

A: Fed generally sets some goals to accomplish using its right of controlling the money supply. Here,…

Q: An economy is operating with an output of $500 billion below its natural level, and fiscal…

A: Given that the economy is operating below the natural level, it is informed in the question is that…

Q: A decrease in labor costs will cause aggregate Multiple Choice supply to increase. demand to…

A: A decrease in labor costs can have implications for both aggregate supply and aggregate demand in an…

Q: In answering the question, you should emphasize the line of reasoning that generated your results;…

A: The aggregate demand and aggregate supply model is used to show the long-run equilibrium and…

Q: Like any economic crisis, unemployment rises, aggregate income falls, and tax collections drop…

A: Financial market:It is a market where there is buying and selling of financial securities. It…

Q: Average Tax Rate Tax Revenue ($B) 20% $250 40 300 60 250 80 200     Refer to the table. If the…

A: Given that the current tax rate is 60%, the tax revenue is $250. In order to increase the revenue,…

Q: Your company has been trying to grow since its creation in the year 2000, and the board of directors…

A: In a market, firm's action and their decision is influenced by internal and external factors, and…

Q: The accompanying graphs illustrate an initial equilibrium for the economy. Suppose that oil prices…

A: The accompanying graphs appear to show the short-run and long-run equilibria for an economy on the…

Q: Diminishing MRS reflects the notion that people prefer balance in their consumption choices.” True…

A: Substitution effect is the concept in which consumer chooses substitute of the product when it's…