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 217 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?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

China’s 8% annual increase in oil consumption China’s 8% annual increase in oil consumption
Circular movement of ice over lateral area just distal to the elbow. Use medium pressure to apply ... Circular movement of ice over lateral area just distal to the elbow. Use medium pressure to apply ...
Organic approaches and the reduction of inputs and pollution Organic approaches and the reduction of inputs and pollution
Oil supply and prices affect the economies of nations Oil supply and prices affect the economies of nations
Effect of an Increase in R&D in the Follower Country on the Steady State Effect of an Increase in R&D in the Follower Country on the Steady State
Effect of an Increase in Technological Progress Effect of an Increase in Technological Progress
Video: Fermentation pathways

For a complete list of videos, visit our video library