This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In the Keynesian model with a fixed money wage but a flexible price level, an increase in taxes will ... (Read 156 times)

xclash

  • Hero Member
  • *****
  • Posts: 681
on: Jun 30, 2018
In the Keynesian model with a fixed money wage but a flexible price level, an increase in taxes will lower
 
  a. output and the price level, but leave the interest rate unchanged.
  b. output, the price level and the interest rate.
  c. output and the interest rate, but leave the price level unchanged.
  d. output and the price level, but increase the interest rate.
  e. the price level and the interest rate, but leave output unchanged.

Question 2

Automatic stabilizers drive changes in
 
  a. the total deficit.
  b. the cyclical deficit.
  c. the structural deficit.
  d. monetary policy.
  e. both b and c.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kardosa007

  • Sr. Member
  • ****
  • Posts: 300
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

B


xclash

  • Member
  • Posts: 681
Reply 2 on: Jun 30, 2018
Excellent

LVPMS

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Sea Level during the Last Glaciation Sea Level during the Last Glaciation
Ripped Money Ripped Money
A Model of Scientific Literacy A Model of Scientific Literacy
A model for the operation of voltage-gated sodium channels. A model for the operation of voltage-gated sodium channels.
Vulnerability – Stress Model Vulnerability – Stress Model
The price of rice in a small country is currently $6 per pound. In order to help low-income ... The price of rice in a small country is currently $6 per pound. In order to help low-income ...
Video: Interspecific Competition Relationship - Competitive & Niche Differentiation

For a complete list of videos, visit our video library