2 Which of the following policies is an example of an automatic stabilizr?O A President Reagan who had campaigned on a platform of increased defense spending, increased defense spending in 1981O B. President Clinton calls for a $16-billion jobs package consisting of increased government purchaseOC. The introduction in the 1960s and 1970s of means-tested federal transfer payments in which individuals qualify depending on their income,OD-A temporary tax increase, recommended by President Johnson's Council of Economic Advisers in 1965An increase in income taxesOA increases disposable personal incomeOB-increases consumptionOC-shifts the aggregate expenditure curve leftwardOD-increases aggregate demandWhich of the following will shift the aggregate expenditure curve to the right?O A contractionary fiscal policyOB. An increase in transfer paymentsOCa decrease in investment tax creditOD.an increase in income taxes.An increase in the investment tax credit,OA will decrease investmentOB.OCOD-lower priceswill shift the aggregate demand curve to the leftraise the real GDP

"Since you have asked multiple questions, we will solve first question for you .. If you want any…

Which of the following policies is an example of an automatic stabilir? OA President Reagan who had campaigned on a platform of increased defense spending increased defense spending in 1981 OB-President Clinton calls for a $16-billion jobs package consisting of increased government purchase OCThe introduction in the 1960s and 1970s of means-tested federal transfer payments in which individuals qualify depending on their income, ODA temporary tax increase, recommended by President Johnson's Council of Economic Advisers in 1965 An increase in income taxes OA

Which of the following policies is an example of an automatic stabilir? OA President Reagan who had campaigned on a platform of increased defense spending increased defense spending in 1981 OB-President Clinton calls for a $16-billion jobs package consisting of increased government purchase OCThe introduction in the 1960s and 1970s of means-tested federal transfer payments in which individuals qualify depending on their income, ODA temporary tax increase, recommended by President Johnson's Council of Economic Advisers in 1965 An increase in income taxes OA

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter17: Taxation And Resource Allocation

Section: Chapter Questions

Problem 2DQ

See similar textbooks

Similar questions

Imagine that the government statisticians who calculate the inflation rate have been updating the basic basket of goods once every 10 years, but now they decide to update it every five years. How will this Change affect the amount of substitution bias and quality/new goods bias?
Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on roads and bridges. What are both the short-term and longâ€”term impacts of such policies on the economy?
Economist Arthur Laffer famously pointed out that, in some cases, income tax revenue can actually go up when tax rates go down. Why might this be the case?
Assuming the tax cut of $245 billion, what is the total amount of taxes paid bythe families in the $200,000 and over income bracket before the tax cut? Whatis the total amount of taxes paid by families in the $20,000 to $30,000 incomebracket before the tax cut?
ASAP
ment Score: Lx Give Up? O Hint Check AnswE 53.5% Resources n 5 of 13 Categorize the scenarios as either a discretionary act or the result of automatic stabilizers. a. A recession increases the number of recipients of unemployment benefits. b. A law is enacted that increases government spending on health-care progrims. c. Legislators increase the generosity of unemployment benefits. d. Economic growth increases personal and corporate income, increasing tax payments.
Imagine that a group of advisors to the president has suggested providing a tax cut for the middle class in order to stimulate the economy and reduce unemployment. The president has asked for your analysis of this proposed tax cut. Post your thoughts both as an economic scientist and economic policy advisor. Read the scenario and, respond to the following: Describe how an economic scientist would approach the tax cut recommended by the advisors in the scenario you just read. What are some economic factors that the economic scientist would consider when crafting his or her statement on the tax cut proposed? Describe how an economic policy advisor would approach the same tax cut and provide the reasoning behind the position. Remember to think like an economist scientist and economic policy advisor when you write your post, even if it goes against your own opinions about whether a tax cut is a good idea. To guide your responses, consider the following questions: What economic…
According to Martin Gilens, which of the following best explains why most Americans are in favor of cutting welfare spending? a. They think that welfare benefits are too high b. They perceive the government as inefficiently spending the money c. They think that the government should instead redirect the money toward strengthening the country's military defense. d. They think that the government should instead redirect the money toward funding unemployment insurance. e. They perceive a vast majority of welfare recipients as undeserving of government assistance.
When Amy's income increased her average tax rate decreased trom 20 peroent to 15 percent. When Alice's income increased. her average tax tate increased hom 20 percent to 2 percent When Juke's income incremed, his average tax rate didn't change Ives in an economy witha pgressive ta ystem pays a proportional te and lives in an economy with a regressive ta ystemm OA. Ale Ay Jake 0B Amy Alice Jake OC. Alce, Jake, Amy O D. Jake, Amy Alice
The Federal Budget- Ask FRED The accompanying graph contains data on "U.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket'" reproduced in the accompanying graph to analyze this aspect of the U.S. tax system_ over the past 100 vears. FREDU.S Individual Income Tax: Tax Rates for Regular Tax: Highest Bracket 100 90 80 70 60 50 a 40 30 20 10 0 1920 1940 1960 1980 2000 Source: U.S. Department of the Treasury. Internal Revenue Service a. When the income tax was first introduced, what was the rate on the highest bracket?
Analyze the graph below, showing the Gross Federal Debt as a percentage of GDP for the United States (1939-2019). Which of the following is correct? FRED d- Gre ederal Dea Percentof Gr Done Produd 116 2013 Pa S Sor O e Loa fe In 2019, the Federal Government of the United States had an accumulated debt/GDP higher than 100 %, meaning that the amount of debt accumulated over time is higher than the value of all goods and services produced in that year. The debt/GDP is always positive during this period, so the Federal Government of the United States incurred in budget deficits every year since 1939. From the mid-40s until the mid-70s, the debt/DGP was decreasing, meaning that the Federal Government. of the United States was running a budget surplus every year during those three decades. During the second half of the 1970s, the Federal Government of the United States was able to keep a balanced budget and, as a result, the debt/GDP was close to zero.
Briefly describe what the "baby boom" affect will be in relation to payroll taxes and indicate what options the government could use to address this issue.