Tax reduction shifts the consumption schedule downward

Assignment Help Business Economics
Reference no: EM131104350

True or False

1. If short-run equilibrium GDP is above potential GDP, prices will eventually rise.

2. A tax reduction shifts the consumption schedule downward.

3. A superior level of technology is an important reason the productivity of workers in rich countries is high.

4. A nation's capital consists mainly of stocks, bonds, and other financial assets.

5. Technological change was a major contributor to the productivity speed-up since 1995.

6. A decrease in disposable income causes a shift in the consumption function.

7. If firms are experiencing falling inventories, one can expect that firms will cut production.

8. President Bush in 2001 wanted a tax cut to stimulate consumer spending.

Reference no: EM131104350

Questions Cloud

Draw the extensive form of the game : Consider the following game. Player 1 is either "Friendly" (with probability 2/3) or "Mean" (with probability 1/3), and decides to Smile or Not Smile. A Friendly type has no cost of smiling, but a Mean type has a cost of 4. draw the extensive form of..
Prepare an income statement : Prepare an income statement and a statement of retained earnings for the year ending December 31, 2005, and a balance sheet at December 31.
Confidence interval estimate of mean amount spent per day : A survey conducted by the American Automobile Association showed that a family of four spends an average of $215.60 per day while on vacation. Suppose a sample of 64 families of four vacationing at Niagara Falls resulted in a sample mean of $252.45 p..
What would be the value of the bond described : What would be the value of the bond described in part d if, just after it had been issued, the expected inflation rate rose by 3 percentage points, causing investors to require a 13 percent return? Would we now have a discount or a premium bond?
Tax reduction shifts the consumption schedule downward : If short-run equilibrium GDP is above potential GDP, prices will eventually rise. A tax reduction shifts the consumption schedule downward. A superior level of technology is an important reason the productivity of workers in rich countries is high. A..
Consumer surplus in the market for red wine : A drought in California destroys many grapes. As a result of the drought, what happens to the consumer surplus in the market for grapes and to the consumer surplus in the market for red wine? Draw the necessary graphs to represent this scenario and t..
Consumer-producer and total surplus at market equilibrium : For this exercise you will need to first build a graph to these specifications: Compute consumer, producer, and total surplus at the market equilibrium. Compute deadweight loss when the government imposes a price ceiling of $120.
Landmark global financial markets event : Explain why the November 1996 Deutsche Telekom issue was a landmark global financial markets event. Discuss: General reasons for privatization and DT’s reasons for it; why DT had to expand the offer outside Germany; why the issue was successful from ..
Calculate the learner index for this monopolist : What would be the monopolist price and quantity? Calculate the profit for the monopolist and the DWL . Calculate the learner index for this monopolist. Now assume that the government imposes a specific tax of $1 per unit. What will happen to price an..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Wages and prices are completely and immediately flexible

Assume that all wages and prices are completely and immediately flexible. If the growth rate of the money supply is 8%, the growth rate of the velocity of money is 4% and inflation is 6%, what is the Solow growth rate?

  Identify and discuss the flows that are created

Also identify and discuss the flows that are created when Government enters the circular flow.

  Nation that devotes more of resources to capital investment

A nation that devotes more of its resources to capital investment is likely to:

  Effect of consumers market position on sign of income effect

Consider a consumer who has preferences defined over commodities x and y. Suppose she is endowed with initial resources ω = (ωx,ωy) » 0 and faces prices p = (px, py). Draw the consumer's budget constraint, explicitly identifying the roles of ω and p...

  Which distribution of income is more unequal

Which distribution of income is more unequal?: Which country has a more UNEQUAL distribution of wealth, Lower Slobovia or Upper Vulcania?

  Why firms in monopolistically competitive industry advertise

Why do firms in a monopolistically competitive industry advertise? Research a firm you feel would be in monopolistic competition and explain their advertising scheme in a short summary. Be sure and cite your reference.

  Balance budget amendment to the constitution

The main reason why there is no support amongst economists to balance the budget every year (Balance budget amendment to the constitution) is that doing so will----

  Firm ic acutely aware of production and marketing decisions

In oligopoly, each firm is acutely aware of the production and marketing decisions of all competitors and carefully considers the potential competitive reactions in all decisions. Discuss whether firms in other market structures consider the potentia..

  Perfectly competitive markets yield highest social welfare

why does the marginal product curve have peak then begin to decline? Explain how a firm can find their profit-maximizing quantity of output? Explain the impact of new production technology on average total cost. Explain the envelop theorem. Describe ..

  Increase in demand and increase in supply will lead

Increase in demand and increase in supply will lead to?:

  Represented by the payoff function

A decision-maker's preferences over the set A=(a,b,c) are represented by the payoff function u for which u(a)=0, u(b)=1, and u(c)=4/ Are they also represented by the function u for which u(a)= -1, u(b)=0, and u(c)=2? How about the function w for whic..

  About the open market sale

Suppose the Fed conducts an open market sale by selling $10 million in Treasury bonds to Acme Bank. Sketch out the balance sheet changes that will occur as Acme restores its required reserves (10% of deposits) by reducing its loans.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd