« previous next »

Author Question: An increase in taxes has the following impact on the budget constraint A) a parallel move down. ... (Read 52 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?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

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 ...
An impact screwdriver used to remove slotted or Phillips head fasteners that cannot be broken loose ... An impact screwdriver used to remove slotted or Phillips head fasteners that cannot be broken loose ...
Keeping your feelings to yourself may increase your stress level Keeping your feelings to yourself may increase your stress level
A 2.8-kg tool can move on a perfectly smooth ramp that slants at 42° above the horizontal. ... A 2.8-kg tool can move on a perfectly smooth ramp that slants at 42° above the horizontal. ...
Physics - A Mixture of Series and Parallel Capacitance Physics - A Mixture of Series and Parallel Capacitance
How high a hill would a 75-kg hiker have to climb to increase her gravitational potential ... How high a hill would a 75-kg hiker have to climb to increase her gravitational potential ...
Video: Cardiac conductile cells

For a complete list of videos, visit our video library