Question 1

Which of the following correctly describes the effects of a decrease in net taxes?

Accepted Answer

A)  Disposable income increases, consumption decreases, and saving decreases. 
B)  Disposable income increases, consumption increases, and saving increases. 
C)  Disposable income decreases, consumption increases, and saving increases. 
D)  Disposable income decreases, consumption decreases, and saving decreases. 
E)  There is no effect on disposable income, consumption, or saving. 
A)  Disposable income increases, consumption decreases, and saving decreases. 
B)  Disposable income increases, consumption increases, and saving increases. 
C)  Disposable income decreases, consumption increases, and saving increases. 
D)  Disposable income decreases, consumption decreases, and saving decreases. 
E)  There is no effect on disposable income, consumption, or saving.

Question 2

The supply-side effect of higher tax rates would include a fall in the economy's potential GDP.

Accepted Answer

A) True 
 B)False

Which of the following correctly describes the effects of a decrease in net taxes?

The supply-side effect of higher tax rates would include a fall in the economy's potential GDP.

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exam 11: Fiscal Policy.

Which of the following correctly describes the effects of a decrease in net taxes?

The supply-side effect of higher tax rates would include a fall in the economy's potential GDP.

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters