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Author Question: In the medium run, a tax increase that causes a reduction in the budget deficit will A) affect ... (Read 202 times)

plus1

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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


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joshbk44

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

C


plus1

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Reply #2 on: Jun 30, 2018
Thank you


joshbk44

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Reply #3 on: Jun 30, 2018
No problemo


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