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 155 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?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Did you know?

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

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

China’s 8% annual increase in oil consumption China’s 8% annual increase in oil consumption
Schemas Affect How We Encode and Remember Schemas Affect How We Encode and Remember
Relaxation Techniques Stress Reduction Relaxation Techniques Stress Reduction
Children with attention deficit disorder with hyperactivity (ADHD) diagnoses typically need a quiet, ... Children with attention deficit disorder with hyperactivity (ADHD) diagnoses typically need a quiet, ...
To increase pressure using body weight, lean on your client. To increase pressure using body weight, lean on your client.
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
Video: Introduction to Macular Degeneration

For a complete list of videos, visit our video library