which of the following is true about supply-side economic policies a) tax cuts tend to almost always raise government revenue b) infrastructure spending proposals almost always shift aggregate supply to the right c) aggressive affirmative action programs decrease race and gender discrimination d) production and savings give rise to real economic growth
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which of the following is true about supply-side economic policies
a) tax cuts tend to almost always raise government revenue
b) infrastructure spending proposals almost always shift
c) aggressive affirmative action programs decrease race and gender discrimination
d) production and savings give rise to real
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- 1)How do markets to Shifts in the Demand and / or the Supply curve.What is the difference between a movement along a specific demand curve or supply curve and a shift of that demand or supply curve. Provide an example using the recent Corona Virus situation. 2) What is GDP? What is real GDP ? What is per capita GDP ? Why is our GDP shrinking in the ongoing Corona Virus Crisis? What is a clear indication that the GDP will be decreasing? Question 3:Why did the Fed switch from increasing Federal Reserve target rates from Dec 2015 to Dec 2018 to reducing interest rates in August 2019? Question 4.Economists often say that trade is a win-win situation. How do you justify this? Why might well-educated economists disagree on appropriate public policy in some situations?Explain some policy options that the US and other countries are considering or implementing in terms of the Corona Virus crisis. 6. Carefully distinguish between an economic theory and economic model. What is the role of value…A developing country adopts a supply-side economic model, emphasizing policies that increase production and supply. such as tax cuts for businesses, deregulation, and incentives for investment. The theory behind this model is that boosting supply will lead to economic growth and job creation. In this scenario, the adoption of supply-side economics primarily aims to: A) Increase consumer demand and government spending B) Stimulate production and economic growth C) Implement strict regulatory controls D) Focus on short-term fiscal measuresGhana’s government wants to shift from agriculture to manufacturing. To do so, the government plans to implement a policy of import substitution industrialization (ISI). About half of Ghana’s population depends on agriculture, but Ghana still imports some of its food. The majority of Ghana's people live in rural areas and exist on a subsistence way of life. Ghana has one of the highest rates of income inequality in the world. Nearly half of the population is employed in agriculture. Ghana’s president’s ISI strategy is to ask Switzerland to adopt a voluntary export restraint (VER). He believes that this is likely to increase Ghanaian welfare. Using two diagrams (one for each country) explain the Ghanaian welfare consequences of this policy.
- Comment on the statement: “Increasing government spending is preferred to a cut in taxes when the U.S. government seeks to fight a recession.” As we know that the statement is normative, i.e., it has value judgement on the issue of whether large or small government is preferred. Show your own opinion.When President Obama was elected, the U.S. economy had slid into a recession. Consumer spending was low and getting worse. In an effort to stop the decline, President Obama proposed an economic stimulus package that included government spending on roads, bridges, and schools, among other things, and a tax cut that each U.S. worker would see in her or his paycheck. Apparently, President Obama was a proponent ofWhich of the following factors does not help an economy thrive? increased wages low unemployment rates high unemployment rates discretionary income
- Suppose that the government believes the economy is not producing goods and services at its optimal level. In an attempt to stimulate the economy, the government increases the quantity of money in the economy by printing more money. This monetary policy the economy's demand for goods and services, leading to product prices. In the short run, the change in prices induces firms to produce goods and services. This, in turn, leads to a level of unemployment. In other words, the economy faces a trade-off between inflation and unemployment: Higher inflation leads to unemployment.Select True or False for each. Structural transformation, which is key to economic development, refers to the reallocation of economic activity (both in terms of employment and relative contribution to GDP) across agriculture, manufacturing, and services. A policy that leads to an increase in the Headcount Index and the Poverty Gap Index will also necessarily lead to an increase in the If an agricultural household has to benefit from higher food prices, the household has to be a net buyer of food, i.e., the marketed surplus must be negative. Agricultural households are both producers and consumers, so what happens to their well-being after a price change in the agricultural commodity they produce is ambiguous. A key feature of the design of a Randomized Control Trial (RCT) is that the researchers allow individuals to choose (i.e., self-select) whether they are in the treatment group or the control group. Selection bias will be positive if the average outcome of the control group is…The United States President decides to raise tariffs on all imports of goods and services from China by 30%. Several studies and analyses have highlighted the costs and benefits of this policy. Which of the following are more likely to be unbiased studies/analyses, and which ones are more likely to be biased? -An article on the New York Times by a Nobel-prize winning economist who serves in the current Administration A peer-reviewed article published on the Scientific Journal "Econometrica" by a Nobel-prize winning economist who serves in the current Administration A working paper (i.e. not yet published) by an Economist which was funded through a research grant from the National Science Foundation to study trade policy A working paper (i.e. not yet published) by an Economist which was funded through a research grants awarded by the a think- tank that supports the ideology of the opposition party A. More likely to be biased B. More likely to be factual/unbiased C. More likely to be…
- On the supply side of the GDP, Structures account for around __________ of U.S. GDP. a)57% b)7% c)37% d)17%Suppose the federal government attempts to combat a recession by purchasing a new fleet of warships for the navy produced by a US manufacturer. What type of economic policy is the government conducting?Identify each of the following topics as being part of microeconomics or macroeconomics: the impact of tax policy on national saving (a) macroeconomics (b) microeconomics