Taxation and government spending are examples of fiscal policy tools used to stabilize an economy

Indicate whether the statement is true or false

TRUE

Economics

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Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, when the market is in equilibrium, the deadweight loss is

A) zero. B) $37,500 per month. C) $150,000 per month. D) $75,000 per month.

Economics

Describe the impact of contractionary fiscal policy (such as a decrease in government spending) upon Real GDP in both a closed economy and an open economy. In which type of economy would the change in Real GDP be greater?

Economics