An economic situation is at a short-run equilibrium as portrayed in the figure. An proper fiscal policy choice to relocate the economy to full employment is come increaseA.tax rates and also move the economic climate to a full-employment equilibrium at suggest b.B.lower the interest rate by raising the amount of money and also move the economic climate to a full-employment equilibrium at suggest b.C.tax rates and also move the economic situation to a full-employment equilibrium at point c.D.government expenditure and move the economic situation to a full-employment equilibrium at suggest b.E.government expenditure and move the economy to a full-employment equilibrium at suggest c.
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In order to assist the economic climate recover indigenous a recession utilizing fiscal policy, the federal government can ________ so that aggregate demand increases.A.decrease the amount of moneyB.raise interest prices C.cut taxesD.raise taxesE.cut government expenditure on goods and also services
______the usage of the federal budget plan to attain macroeconomic objectives such together full employment, continual economic growth, and also price level stabilityis make by ______ ~ above an annual timeline.A.Fiscal policy and also monetary policy are; the President, Chairman of the Fed, and CongressB.Fiscal policy is; the President, Vice-President, Cabinet, Chairman the the Fed, and CongressC.Fiscal policy is; the President and also CongressD.Fiscal policy and monetary policy are; the President, Vice-President, Cabinet, Chairman that the Fed, and also Congress
The table shows the receipts and also the outlays that a nation at each level of actual GDP. What is the budget deficit once real GDP is $4 trillion?When real GDP is $4 trillion, the budget deficit is $___ trillion.
A taxes on labor income ______. The equilibrium quantity of labor ______. A.decreases the it is provided of labor; decreases.B.decreases the demand for labor; decreasesC.decreases the it is provided of labor and also increases the demand for labor; increasesD.decreases the supply of labor and increases the need for labor; decreasesAt the brand-new equilibrium amount of labor, the before-tax wage price _____ and the after-tax wage price ____.
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An economy is suffering a recessionary gap. The federal government can ______.A.raise counting or diminish the amount of money to decrease long-run aggregate supplyB.increase expenditure or reduced taxes to increase accumulation demandC.increase expenditure or cut taxes to increase short-run aggregate supplyD.raise taxes to decrease long-run accumulation supply
Taxes and needs-tested spending job-related as automatic fiscal plan to dampen the organization cycle since taxes ______ throughout an expansion, and needs-tested spending ______ throughout a recession.A.decrease; decreasesB.increase; decreasesC.decrease; increasesD.increase; increases
At the end of 2011, the federal government of China"s blame was yen12.2 trillion. (yen is yuan, the currency of China). In 2012, the federal government spent yen12.7 trillion and ended the year through a debt of yen11.6 trillion.How lot did the government receive in tax revenue in 2012? The government received yen________trillion in taxes revenue in 2012.
f the economic climate is in equilibrium with real GDP much less than potential GDP, there is ________ gap and also a fiscal plan that ________ is appropriate.A.an inflationary; increases aggregate demandB.a recessionary; increases aggregate demandC.a recessionary; rises potential GDPD.a recessionary; decreases aggregate demandE.an inflationary; decreases accumulation demand
A to decrease in the taxes on capital income ______ the genuine interest price and ______ investment and economic growth.A.decreases; decreasesB.decreases; increasesC.increases; increasesD.increases; decreases