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

Author Question: If we include consideration of potential effects of a proposed tax reduction and simplification on ... (Read 81 times)

geoffrey

  • Hero Member
  • *****
  • Posts: 880
on: Jun 29, 2018
If we include consideration of potential effects of a proposed tax reduction and simplification on the labor supply, we would expect crowding out of investment and net exports brought about by the tax cut to be
 
  A) increased as aggregate real income and output rise in the long run.
  B) unaffected by the shifting long-run aggregate supply curve.
  C) dependent upon the impact of this tax change on consumer disposable income.
  D) less than it would be without the supply-side effects.

Question 2

What is meant by constant returns to scale?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ghepp

  • Sr. Member
  • ****
  • Posts: 361
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

Constant returns to scale implies that an increase in the firm's scale of production has no effect on average costs per unit produced.


geoffrey

  • Member
  • Posts: 880
Reply 2 on: Jun 29, 2018
Wow, this really help

matt95

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

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?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Potential uses of stem cells Potential uses of stem cells
Effects of a Partial Agonist Effects of a Partial Agonist
Action Potential Propagation Through the Heart Action Potential Propagation Through the Heart
Answer the following short answer, please show your steps and include the formulas used Answer the following short answer, please show your steps and include the formulas used
Gravitational Potential Energy for the Earth problem Gravitational Potential Energy for the Earth problem
Effects of acidosis and alkalosis on the oxyhemoglobin dissociation curve Effects of acidosis and alkalosis on the oxyhemoglobin dissociation curve
Video: Vasectomy

For a complete list of videos, visit our video library