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

Author Question: In the medium run, a tax increase that causes a reduction in the budget deficit will A) affect ... (Read 215 times)

plus1

  • Hero Member
  • *****
  • Posts: 676
on: Jun 30, 2018
In the medium run, a tax increase that causes a reduction in the budget deficit will
 
  A) affect only the price level.
  B) not affect the price level but will alter the composition of output.
  C) not affect the level of output, but will affect the composition of output.
  D) affect both the level and composition of output.

Question 2

In the medium run, a tax cut that causes an increase in the budget deficit will affect which of the following?
 
  A) the level of output but not its composition
  B) both the level and composition of output
  C) only the composition of output
  D) only the price level
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joshbk44

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

C


plus1

  • Hero Member
  • *****
  • Posts: 676
Reply #2 on: Jun 30, 2018
Thank you


joshbk44

  • Sr. Member
  • ****
  • Posts: 340
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

Osteoporosis. (a) A section through normal spongy bone. (b) A section through a bone with osteoporos Osteoporosis. (a) A section through normal spongy bone. (b) A section through a bone with osteoporos
Mechanisms of action of antiepileptic drugs that affect GABA. Mechanisms of action of antiepileptic drugs that affect GABA.
Physical features of Sjögren's syndrome. Source: Ways Sjogren's Syndrome May Affect the ... Physical features of Sjögren's syndrome. Source: Ways Sjogren's Syndrome May Affect the ...
Greenhouse gases increase in the stratosphere Greenhouse gases increase in the stratosphere
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Comparison of Alpha Modified Eagle’s Minimum Essential Medium with Dulbecco’s Modified Eagle’s ... Comparison of Alpha Modified Eagle’s Minimum Essential Medium with Dulbecco’s Modified Eagle’s ...
Video: Types of Shock (Part 2 of 2)

For a complete list of videos, visit our video library