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Author Question: You are advising the Prime Minister. The Prime Minister feels that the current unemployment rate is ... (Read 27952 times)

meagbuch

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on: May 25, 2020

Question 1

Which of the following is NOT an undesirable side-effect of discretionary fiscal policy?
◦ Cuts in spending may harm the poor.
◦ Raising taxes raises prices.
◦ Tax changes could have disincentive effects.
◦ Tax changes may change expectations.

Question 2

You are advising the Prime Minister. The Prime Minister feels that the current unemployment rate is too high and that the unemployment rate can be reduced if aggregate output increases. He/she wants to know what policy to pursue to increase aggregate output by £3 billion. The mpcd is 0.8. Which of the following policies should you recommend?
◦ Increase government spending by £0.6 billion.
◦ Cut taxes by £2.4 billion and to increase government spending by £2.4 billion.
◦ Increase government spending by £2.4 billion.
◦ Cut taxes by £0.6 billion.
Essential Economics for Business ¦ Sloman, Jones ¦ 5th Edition
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Marked as best answer by meagbuch on May 25, 2020

Bison

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Reply #1 on: May 25, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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meagbuch

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Reply 2 on: May 25, 2020
Wow, this really help

juliaf

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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