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 234 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?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Stars and the Interstellar Medium Stars and the Interstellar Medium
Relaxation Techniques Stress Reduction Relaxation Techniques Stress Reduction
A high-performance aftermarket air filter often can increase airflow into the engine for more ... A high-performance aftermarket air filter often can increase airflow into the engine for more ...
IPCC Temperature Increase Predictions Relative to 1986-2005 IPCC Temperature Increase Predictions Relative to 1986-2005
Apply effleurage to upper chest bilaterally over pectoral muscles and sternum. Medium pressure ... Apply effleurage to upper chest bilaterally over pectoral muscles and sternum. Medium pressure ...
Greenhouse gases increase in the stratosphere Greenhouse gases increase in the stratosphere
Video: Cardiac Cycle (Part 1 of 4)

For a complete list of videos, visit our video library