« previous next »

Author Question: An increase in taxes has the following impact on the budget constraint A) a parallel move down. ... (Read 54 times)

erika

  • Hero Member
  • *****
  • Posts: 522
on: Jun 30, 2018
An increase in taxes has the following impact on the budget constraint
 
  A) a parallel move down.
  B) a parallel move up.
  C) a tilting to the left.
  D) a tilting to the right.

Question 2

Why is there no long-run trade-off between unemployment and inflation?
 
  What will be an ideal response?


Tonyam972

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

Because when the labor market is so tight as to cause wages and prices to rise, the resulting inflation intensifies the pressure on wages and prices (by reducing the real wage and increasing expected inflation). Since the inflation in no way balances or compensates for the low level of unemployment, the condition of too low unemployment is unsustainable in the long run.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Parallel Gratings Parallel Gratings
Gossip and ridicule increase the status insecurity of this time of life. Gossip and ridicule increase the status insecurity of this time of life.
Nonlinear increase in saturation vapor pressure with increase in temperature. Nonlinear increase in saturation vapor pressure with increase in temperature.
Industrial Waste and the Impact on the Environment Industrial Waste and the Impact on the Environment
Greenhouse gases increase in the stratosphere Greenhouse gases increase in the stratosphere
Increase in total spending in presidential campaigns, 1976-2020 Increase in total spending in presidential campaigns, 1976-2020
Video: Nucleic acid digestion -small intestine

For a complete list of videos, visit our video library