« previous next »

Author Question: If there is currently an inflationary gap: a. The price level will tend to rise. b. Real output ... (Read 56 times)

Ebrown

  • Hero Member
  • *****
  • Posts: 567
on: Jun 30, 2018
If there is currently an inflationary gap:
 a. The price level will tend to rise.
  b. Real output will tend to rise.
 c. Both a. and b. will occur.
 d. None of the above will occur.

Question 2

Which of the following correctly explain Ricardian equivalence?
 a. Government spending that is financed by borrowing has a smaller effect on the economy than government spending financed by raising taxes.
  b. Consumers do not base current spending on future expected tax liabilities.
  c. Government borrowing can function like increased current taxes, reducing current household and business expenditures.
  d. The government should balance its budget by equating revenue and expenditure in every fiscal year.
  e. Government spending does not crowd out private investment.


shailee

  • Sr. Member
  • ****
  • Posts: 392
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Possible symbiotic or endosymbiotic relationships that gave rise to the first eukaryotic cells Possible symbiotic or endosymbiotic relationships that gave rise to the first eukaryotic cells
How to use the discriminant to determine the value of k in a quadratic with no real roots How to use the discriminant to determine the value of k in a quadratic with no real roots
U.S. Output and Productivity Growth, 1870–2007 U.S. Output and Productivity Growth, 1870–2007
Possible Sources of Differences in Output per Worker Possible Sources of Differences in Output per Worker
Share of Hours Worked by Education Level, 1940–2008 Share of Hours Worked by Education Level, 1940–2008
World Mean Sea-Level Temperatures in July World Mean Sea-Level Temperatures in July
Video: Summary of glucose catabolism

For a complete list of videos, visit our video library