Author Question: Refer to Table 9-4. Assume the market basket for the consumer price index has two products meat and ... (Read 67 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
Refer to Table 9-4. Assume the market basket for the consumer price index has two products  meat and potatoes  with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
 
  A) 125. B) 129. C) 135. D) 141.

Question 2

Identify each of the following as (i) part of an expansionary fiscal policy, (ii) part of a contractionary fiscal policy, or (iii) not part of fiscal policy.
 
  a. The personal income tax rate is lowered.
  b. Congress cuts spending on defense.
  c. College students are allowed to deduct tuition costs from their federal income taxes.
  d. The corporate income tax rate is lowered.
  e. The state of Nevada builds a new tollway in an attempt to expand employment and ease traffic in Las Vegas.



leannegxo

  • Sr. Member
  • ****
  • Posts: 374
Answer to Question 1

D

Answer to Question 2

a. This is expansionary fiscal policy.
b. Although a decrease in defense spending will lead to a decrease in aggregate demand, it is not part of fiscal policy because it is not intended to achieve a macroeconomic policy goal.
c. Although reducing taxes in this way will lead to an increase in aggregate demand, it is not part of fiscal policy because it is not intended to achieve a macroeconomic policy goal.
d. This is expansionary fiscal policy.
e. This is not part of fiscal policy because the action is not intended to affect the national economy.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

For a complete list of videos, visit our video library