« previous next »

Author Question: An increase in taxes has the following impact on the budget constraint A) a parallel move down. ... (Read 18 times)

erika

  • Hero Member
  • *****
  • Posts: 522
on: Jun 30, 2018
An increase in taxes has the following impact on the budget constraint
 
  A) a parallel move down.
  B) a parallel move up.
  C) a tilting to the left.
  D) a tilting to the right.

Question 2

Why is there no long-run trade-off between unemployment and inflation?
 
  What will be an ideal response?


Tonyam972

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

Because when the labor market is so tight as to cause wages and prices to rise, the resulting inflation intensifies the pressure on wages and prices (by reducing the real wage and increasing expected inflation). Since the inflation in no way balances or compensates for the low level of unemployment, the condition of too low unemployment is unsustainable in the long run.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes Browning and Gunning demonstrated that placental transfer tissues increase plant reproductive succes
Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first
Regular staff meetings increase the efficiency of the medical office staff. Regular staff meetings increase the efficiency of the medical office staff.
Mean scores for Erikson’s stage VI (Intimacy) for two cohorts. Scores for both cohorts increase ... Mean scores for Erikson’s stage VI (Intimacy) for two cohorts. Scores for both cohorts increase ...
The impact of endocrine disruptor on animal The impact of endocrine disruptor on animal
Effect of an Increase in Technological Progress Effect of an Increase in Technological Progress
Video: Knee Animation

For a complete list of videos, visit our video library